One session options are European-style options that are valid for one trading session only, expiring prior to the start of the next trading session. One session options on 3 year and 10 year treasury bonds are cost effective and flexible tools for market users and can be used for:
- Protecting interest rate positions against short-term price movements
- Hedging positions from the risk of events like cash rate announcements and economic data releases
- Creating multi-leg strategies like straddles and strangles
- Creating an interest rate 'stop loss' by establishing a firm exit price.
Like any investment, futures and options on futures have risks you need to understand before trading. You should obtain independent advice from a professional adviser before making a decision.