The Trading Floor with David Axtell

Knock-in and knock-out barriers can radically change cost and risk. Understand how barriers behave as spot approaches the trigger and why discontinuous exposures require active management.

This episode is part of FX Options Daily, a 30-day themed season of The Trading Floor covering pricing, hedging, exotics, risk and institutional FX options practice.

Full treatment: Chapter 8 of FX Options.

Educational content only. Nothing in this episode constitutes investment advice.

Digital options pay a fixed amount if a condition is met and nothing if it is not. This episode explains their discontinuous payoff, pricing behaviour and concentrated risk around the strike.

This episode is part of FX Options Daily, a 30-day themed season of The Trading Floor covering pricing, hedging, exotics, risk and institutional FX options practice.

Full treatment: Chapter 7 of FX Options.

Educational content only. Nothing in this episode constitutes investment advice.

Calls, puts, spreads and collars translated into real treasury decisions. Learn how zero-cost structures are assembled and why no-upfront-premium never means no economic cost.

This episode is part of FX Options Daily, a 30-day themed season of The Trading Floor covering pricing, hedging, exotics, risk and institutional FX options practice.

Full treatment: Chapter 6 of FX Options.

Educational content only. Nothing in this episode constitutes investment advice.

Why implied volatility is not one number. Explore smiles, skews, term structure and the way strike and expiry combine to create the FX volatility surface used for pricing and risk.

This episode is part of FX Options Daily, a 30-day themed season of The Trading Floor covering pricing, hedging, exotics, risk and institutional FX options practice.

Full treatment: Chapter 5 of FX Options.

Educational content only. Nothing in this episode constitutes investment advice.

Delta, Gamma, Vega and Theta are the core language of options risk. This episode explains what each Greek measures and why traders manage the sensitivities rather than just the option price.

This episode is part of FX Options Daily, a 30-day themed season of The Trading Floor covering pricing, hedging, exotics, risk and institutional FX options practice.

Full treatment: Chapter 4 of FX Options.

Educational content only. Nothing in this episode constitutes investment advice.

How the classic Black-Scholes framework is adapted for currencies through two interest rates, forward pricing and the Garman-Kohlhagen approach used across FX options markets.

This episode is part of FX Options Daily, a 30-day themed season of The Trading Floor covering pricing, hedging, exotics, risk and institutional FX options practice.

Full treatment: Chapter 3 of FX Options.

Educational content only. Nothing in this episode constitutes investment advice.

Why getting the currency direction right is not enough. This episode explains intrinsic value, time value, moneyness and the forces that can make an option lose value even when spot moves your way.

This episode is part of FX Options Daily, a 30-day themed season of The Trading Floor covering pricing, hedging, exotics, risk and institutional FX options practice.

Full treatment: Chapter 2 of FX Options.

Educational content only. Nothing in this episode constitutes investment advice.

Before 2008, one yield curve valued a swap. The crisis proved that wrong. Episode four rebuilds cross-currency swap valuation from the ground up: why projection and discounting became two different jobs, how the cross-currency basis enters the price as a first-order component, and the sign convention that costs people real money when they get it backwards. Plus the idea that surprises everyone — the collateral you post decides which curve you discount with. Host David Axtell works the book's own figures throughout. Companion season to Cross-Currency Swaps and Basis Trading, out 15 December.

A practical look at how the decentralised OTC FX options market works, who provides liquidity, why bespoke contracts dominate, and how venue and dealer choice affect execution.

This episode is part of FX Options Daily, a 30-day themed season of The Trading Floor covering pricing, hedging, exotics, risk and institutional FX options practice.

Full treatment: Chapter 1 of FX Options.

Educational content only. Nothing in this episode constitutes investment advice.

David Axtell introduces FX Options Daily, a 30-day season of The Trading Floor built around the institutional practice of pricing, hedging, exotics and risk in foreign exchange options.

This episode is part of FX Options Daily, a 30-day themed season of The Trading Floor covering pricing, hedging, exotics, risk and institutional FX options practice.

The season introduction sets up the full 30-episode journey.

Educational content only. Nothing in this episode constitutes investment advice.