Strategy Wizard (SM)

Strategy Trading is an extended combination trading functionality enabling market participants to create an individual strategy based on predefined strategy types (Butterfly, Condor, Straddle, etc), and to announce this strategy to the entire market. There are two kinds of strategy types

• option strategies, involving up to four option legs
• option volatility strategies, comprising a variety of option positions against an underlying futures (or, for equity options, LEPO) position

Strategies created and published by market participants are visible to the whole market and are traded via separate public order books (strategy order books) distinct from the regular option and futures order books. The matching algorithm for strategy orders is based on the principle of price/time priority.

Limit orders and quotes are supported for strategy trading. An order can have the restriction "immediate or cancel" (IOC), or no restriction. Market and stop orders are not supported.

At present, there are no specific Market-Making obligations for strategies. Market Makers who fulfill their quotation on request or, where applicable, Permanent Market Maker (PMM) or Advanced Market Maker (AMM) obligations automatically qualify for market maker refunds in strategies.

All strategies, open strategy orders and strategy quotes are removed at the end of the business day.

For detailed information about strategy combinations please click here (PDF) or see the Quick Reference Guide Strategy Wizard^SM (PDF).

Strategy Wizard^SM Demo

The following movies demonstrate strategy trading with DAX® Options. The Strategy Wizard^SM facility is also available for Eurex Equity Options, Equity Index Options as well as Fixed Income Options.