beggining to Europe options markets

[energizer]

hi traders
the last years i trade only US options and im wondering to take a step and begin also to start to trade Europe options,which is your impressions for Europe options market?it's efficiency as US? the bid/ask spreads?the contracts volume?the best exchanges?for sure i know the LIFFE,also the most important,did you had all the reliable data you need for the software models? e.g IV 30/60/y HV,rates?did anyone use the optinvue to Europe markets?as i send them some mails for support to Europe and i still wait answer!
thanks for your time

 

[abottoml]

I am based in London, but LIFFE has 1,000 underlying securities per contract as opposed to 100 on CBOT. That lot size is too steep for this newbie so I am sticking with US options for now.

 

[Axis of Evil]

I am based in London, but LIFFE has 1,000 underlying securities per contract as opposed to 100 on CBOT. That lot size is too steep for this newbie so I am sticking with US options for now.

This depends on which market and stock you're trading. All Amsterdam or Brussel option contracts are based on 100 underlying shares. Paris options contracts differ between 10 or 100 underlying shares. London only plays for a 1,000 (Which was a surprise for me and think this is utter madness) ..so get you kix on route 66!

Good luck..

 

[RPEX]

I am based in London, but LIFFE has 1,000 underlying securities per contract as opposed to 100 on CBOT. That lot size is too steep for this newbie so I am sticking with US options for now.

But it kinda makes sense, since only UK stocks are quoted in pence as opposed to pounds, in contrast with the 100xmultiple elsewhere. Why are UK stocks quoted in pence?

 

[Axis of Evil]

But it kinda makes sense, since only UK stocks are quoted in pence as opposed to pounds, in contrast with the 100xmultiple elsewhere. Why are UK stocks quoted in pence?

In PENCE? Aha, now I understand. That just showed that you'll never to old to learn. I never got around doing some investigation about why these FTSE prices seem to be so freaking high apposed to prices in Euro-coin markets.

Why this is? Well, i just found out that that's the case, so odds are about a gazillion to one that I can tell you the reason, especially since I'm not British. But I think it probably has to do something with the valuation of the currency back in History. The pound has always been a strong currency or expensive currency against the old coins of the rest of Europe. I can remember that about 1 pound was about 3 Deutsch marks or 4 Dutch guilders. I can imagine that in 1801, a pound was about a weeks or even a months wager for most common people. Chopping it all up in pence would probably create more liquidity, thus more trades and price movements. Also, back in History the pound was divided into 20 shilling. Each shilling was divide into 12 pence. So, the old pound consisted out of 240 pence?!?!

In 1971 the pound was changed into the decimal system, where the pound got divided in only 100 "new" pence or more commonly used, "p" or "pee". Today 50p is half a pound sterling, opposed to 50 pence being round about, somewhat of 1/5-ish of a pound.. uhm, or 120 pence was half a pound in the old day, where as it is now 1 pound and 20p. This is quite confusing, even for a British chap, not?

If you wanna know more, go to here to find out.

Anyway, it's now clear to me why the FTSE option contracts have a base of 1,000 shares as underlaying shares, so thanks RPEX.