Hi everybodyWhat are the main differences between IR and FX derivatives trading ?Talking about product complexity, market players, pricing models, industry future... anything!Any insight greatly appreciated

im interested to hear answers to this..... does anyone have any comments?

FX means one asset, while the yield curve is an inter-related system ... that's a big difference per se.

am i correct in believing FX options are traded on a more volatility basis and IR options more directionally?

Hi JamesH83,>> am i correct in believing FX options are traded on a more volatility basis and IR options more directionally?I am not too sure I understand the question ... but I will give it a try. I have no personal experience on fx so I'll stay out of that, but in interest rate markets I see the following; any comments are welcome. Yield curve seems to have to main business sectors (1) Short Term and (2) the rest of the curve (MT up to LT ...).In (2) vega (directional / skew) trading is probably the biggest. Short options on long maturities or durations constitute the gamma market. Both can be spreaded or played outright.In (1), well, for short term options on short maturities, yes the market seems to be mainly directional.cu around BM

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baha thanks for your post. what are the relative pros and cons of trading IR / FX options?