Options are tradeable contracts which can be used to speculate the prices of assets such as stocks and bonds at certain dates in the future. Options trading providers the choice to buy or sell a particular asset at a specified price on a specified date. Paying a premium upfront makes the trader eligible to buy or sell the asset at its designated strike price before the expiration date. Strike price is the predetermined price of the asset by a specified date. Lower strike price enables the trader to buy the asset regardless of the current price while a higher strike price enables the trader to sell the stock before the expiration date.
Trade Smarter is an institutional-grade options pricing platform for retail traders by Options-Quant. This platform utilises many pricing models and other data to provide accurate price speculations of options contracts. Pricing models are mathematical models which utilise many parameters such as current stock price, time to expiration, intrinsic value, volatility, interest rates and more to predict the value of options at specific dates.
Features of the platform
Trade Smarter provides accurate calculations of options pricing. More than 125 pricing models including Monte Carlo, Jump Diffusion, Black-Scholes, Merton-73 and American Options are used by this platform. Thus, the traders can make a selection among a huge selection of pricing models.
Accurate real time pricing is ensured by academic and proprietary approximation models such as Polynomial, Romberg’s and more. A host of options such as futures, equities, fixed income and FX come under the purview of this platform. The models used by this platform have been designed with the help of researchers of top universities. The wealth of data provided to the traders help them in making well informed decisions.
This platform can easily use complicated models for processing thousands of option chains very swiftly. Its high speed is assured by its close proximity to the processor. This is a result of the C++ programming language used in developing it.
Trade Smarter is available only for Windows devices. It does not require external data sources or API.
Benefits of the platform
The users are able to make trades in accordance with the values of the options at specified dates as calculated by the platform relative to the current market price. This is called relative value trading which takes advantage of the price inefficiencies of the market with the help of the pricing platform.
Trade Smarter platform can be used to price any option of any asset. This helps the traders in comparing the worth of two similar assets. Another benefit of Trade Smarter platform is that it can be used to determine the near exact price of an option by simulating possible market moves such as increase in volatility. This is very useful in risk management.
Trade Smarter is for one-time purchase. A digital download of the application is received on making a purchase. Documentation carrying comprehensive information about each and every function is also provided to the user.
What is this platform?
The Options-Quant platform is an options pricing engine that is used to calculate inefficiencies in option prices according to various different pricing models. This includes options on futures, FX, equities, and fixed income. The models featured are used in various hedge funds, and are curated by researchers at leading Universities.
How do I use it?
Upon purchasing, you will receive a digital download of the application as well as a robust documentation that outlines the concepts, explaining how each function works.
E.g.; The overwhelming majority of our users make trades based on the model value of the option relative to the current market price. If MertonJumpDiffusion model estimates the price of an option to be lower than what the market price is trading at, the trader shorts the option and vice-versa. This strategy, also known as relative value trading, uses the platform to exploit pricing inefficiencies.
Can I make trades on the platform?
Currently, the platform is only meant for pricing the options. To submit trades you must use a third-party brokerage, like Robinhood or TD Ameritrade.
Which operating systems are supported?
Currently, we only offer the platform on Windows devices.
Does the platform use any external data?
The platform relies only on user-entered parameters. It does not connect to any external data source or API.