Institutional traders use the volatility surface to forecast price moves with precision, while traditional traders rely on vague intuition. The difference is like reading actual weather instruments instead of guessing by looking at clouds.
The difference from the traditional trader and institutional trader. The traditional trader, what he does with all his strategy is like looking at the cloud and see, okay, it's a gray cloud, it's windy. In countries like mine, you see the birds flying. And a normal trader could say, okay, it's going to rain. When you understand the volatility surface and its relationship with price, it's like seeing the same clouds but have instruments to say, okay, this is the air pressure, this is the wind conditions, this is the humidity. All these kind of tools that can actually tell you with more precise, more probability, actually it's going to rain. He
