International Gold Options Exchange
The International Gold Options Exchange (IGO) is an exchange where options on gold are traded. It is located in London, England, and it is a recognized gold benchmark.
History
The IGO was founded in 1983 by a group of banks, including Barclays, Deutsche Bank, and Goldman Sachs. The goal of the IGO was to create a centralized marketplace for trading gold options.
Trading
Options on gold are contracts that give the buyer the right, but not the obligation, to buy or sell gold at a certain price on a certain date. The IGO offers a variety of gold options contracts, including call options and put options.
Call options give the buyer the right to buy gold at a certain price on a certain date. Put options give the buyer the right to sell gold at a certain price on a certain date.
The price of gold options is determined by a number of factors, including the spot price of gold, the volatility of gold prices, and the time to expiration of the option.
Participants
The IGO is used by a variety of participants, including:
* Banks
* Hedge funds
* Commodity trading advisors
* Individual investors
Benefits
The IGO offers a number of benefits to participants, including:
* A centralized marketplace for trading gold options
* A regulated and transparent trading environment
* A wide variety of gold options contracts
* The ability to hedge against gold price risk
Conclusion
The IGO is a leading exchange for trading gold options. It offers a variety of benefits to participants, including a centralized marketplace, a regulated trading environment, and a wide variety of gold options contracts.
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