Volatility is one of the most prominent terms you’ll hear on any trading floor – and for good reason. In financial markets, volatility captures the amount of fluctuation in prices.
Stock trading software system. Image credit: StockSnap via Pixabay (Pixabay licence)
High volatility is associated with periods of market turbulence and to large price swings, while low volatility describes more calm and quiet markets. For trading firms like Optiver, accurately predicting volatility is essential for the trading of options, whose price is directly related to the volatility of the underlying product.
As a leading global electronic market maker, Optiver is dedicated to continuously improving financial markets, creating better access and prices for options, ETFs, cash equities, bonds and foreign currencies on numerous exchanges around the world. Optiver’s teams have spent countless hours building sophisticated models that predict volatility and continuously generate fairer options prices for end investors. However, an industry-leading pricing algorithm can never stop evolving, and there is no better place than Kaggle to help Optiver take its model to the next level.
Submissions to this Challenge must be received by 11:59 PM UTC, September 27, 2021.
Source: Kaggle
