Skip to main content
Learn

What Is a “Volatility Surface” and How Is It Used in RFQ Pricing?

The volatility surface plots IV against strike and time-to-expiry, used by LPs as the core reference for consistent RFQ pricing.
Greeks.Live14.11.25

What Is a “Volatility Surface” and How Is It Used in RFQ Pricing?

A volatility surface is a three-dimensional plot that shows the implied volatility for all available options on a given underlying asset, plotted against both the option's strike price and its time to expiration. Market makers use the volatility surface to ensure consistency and accuracy when pricing an RFQ.

Any quote must align with the current surface to avoid being picked off. It is the core reference for calculating the fair value of any option derivative.

How Do Liquidity Providers (LPs) in a DEX Earn Fees?
Does the Use of a Reference Price from a Lit Exchange Introduce Latency Risk?
What Is a CDS Curve and What Does Its Shape Indicate?
What Are the Challenges in Normalizing Contract Specifications (E.g. Expiry Formats) across Exchanges?

About

Contact

Editorial Policy

Terms of Service

Privacy Policy

Cookie Policy

© 2025 Greeks.Live

All Rights Reserved

Greeks.Live RFQ

Build by Noo on Engine

Source: The content on this website is produced by Greeks.live's proprietary analysis systems, which utilize advanced Large Language Models (LLMs). This information might not be subject to a full human review before publication and may contain errors.
Responsibility: You should not make any financial decisions based solely on the content presented here. We strongly urge you to conduct your own rigorous due diligence and to consult a qualified, independent financial advisor.
Purpose: All information is intended for informational purposes only. It should not be construed as financial, investment, trading, or any other form of professional advice. News and data are not trading signals.
Risk: The cryptocurrency, derivatives, and options markets are highly volatile and carry significant risk. By using this site, you acknowledge these risks and agree that Greeks.live and its affiliates are not responsible for any financial losses you may incur.