#Options trading is thriving in the U.S.
Being derived from underlying assets, the power of options lies in their versatility. They enable investors to adapt or adjust your position according to any situation that arises, and they can be as speculative or as conservative as investors want. There are exchange-traded options, over-the-counter ones and other styles, and it further increase the diversity of the options family.
Trading options, therefore, can generate a great variety of strategies, ranging from more traditional portfolio hedging, to the speculative gauging of market trends, to the extremely competitive high frequency trading. And it forms a market full of innovations all the time. The North American Derivatives Exchange (Nadex) based in Chicago just recently proposed trading of options that are tied to the outcome of various 2012 elections in the US.
Due to its risky nature, however, options trading is not for everyone. Last year, European investors were apparently spooked by persistent volatility in the cash markets as sharp price movements show a lack of market liquidity. European exchanges, such as the London Stock Exchange, reported significant (20-30%) drop in options trading volume. On the contrary, options trading in the U.S. rose 10% year-over-year in November with Amex increasing its share of the competitive US market from 12.83% to 14.5% and Arca from 10.26% to 11.49%.
The Trading Show Chicago 2012 will focus quite a bit on this rigorous options trading market with experts coming from proprietary trading firms, leading options exchanges, investment advisory firms, and CTAs sharing their ideas with peers.