Derivatives

CMS Convexity Adjustment

February 22, 2022
Derivatives

Call Volatility Trade

February 22, 2022

Share

The process of grouping large orders together rather than allocating these orders up front. In other words, it involves combining odd-lot orders (small and non-standard orders)- for the same security- from multiple clients into a round lot in a bid to save the old-lot differential. This results in the so-called bunched orders.

It is also known as bunching or executing in-house crosses.

Leave a Reply

Related Tags

All Topics in the Letter