Volatility Quote Trading
A method of quoting option contracts whereby bids and asks are quoted according to their implied volatilities rather than prices.
Investopedia Commentary
Used mainly by sophisticated investors, volatility quotes benefit those investors who trade upon volatility rather than price. These investors are typically interested in the likelihood of a contract moving up or down in price rather than in its actual cost.
See also: Ask, Bid, Futures Contract, Implied Volatility, Option, Volatility