1. Deribit Support
  2. Exchange
  3. Orders
  4. Trade Orders

IV Order - Options

  • Updated

An IV order allows the trader to choose an implied volatility (IV) for the order. The price of the order in the order book will regularly be updated to match the chosen implied volatility. It won't always be possible to match the chosen IV exactly, so the closest valid price will be used in the order book. IV orders are only available for options.

Additional details

Implied volatility is a measure of the market’s current view of what the future volatility will be. And this view is expressed by the current price of option contracts.

IV orders can be used on both inverse and linear options.

  • IV orders don't update in real time. They usually update roughly every 1 second, but can take longer. This means during a fast move, it is possible for the price of an IV order to be stale.

  • IV orders will snap to the nearest valid price in the order book. So two IV orders with different IV values can share the same price in the order book.

  • Due to the previous point, the IV level seen in the order book for an IV order may be different to the selected IV level which can be seen in the open orders table.

  • To avoid any unexpected behaviour going into expiry, IV orders are cancelled 15 minutes before the option is due to expire.

Placing an IV Order on Deribit

  1. Instrument selection

    1. Expiry date

    2. Strike

    3. Side

  2. RFQ. This button allows traders to send a notification to market makers that indicates they are interested in trading the instrument. This will allow market makers to put a quote into the order book for the requested size. This button is informational only, not an execution mechanism.

  3. Order type. Some order types are not available for certain instruments.

  4. Option limit order - The limit price is entered in the settlement currency.

  5. Option USD order - The USD value of the order is entered. The price of the order in the order book will then be regularly updated to be the closest valid price to the chosen USD value.

  6. Option IV order - The implied volatility of the order is entered. The price of the order in the order book will then be regularly updated to be the closest valid price to the chosen implied volatility.

  7. Order amount

  8. Order price

  9. Buy and Sell buttons

  10. TIF

    • Good till cancel (GTC) - GTC is the default setting. The order will remain open until it is filled, cancelled, or the instrument expires.

    • Good till day (GTD) - If it has not already been filled or cancelled, the order will be cancelled automatically at the end of the current daily session (8 AM UTC).

    • Immediate or cancel (IOC) - Any portion of the order that cannot be filled immediately will be cancelled.

    • Fill or Kill (FOK) - The order is either filled immediately and completely, or not at all.

  11. Special

    • Reduce (reduce_only) - This setting will ensure the order can only reduce an open position. It can not increase the size of any existing positions, or open any new positions.

  12. The current position size on the selected instrument.

  13. Initial margin requirement

  14. Position impact PM (portfolio margin).