Choose Your FX Options Trading Strategy
FX Options are an excellent way to diversify your trading strategies by using various investment timelines as well as hedging spot positions.
Saxo Bank offers two types of Forex OTC Options: Forex Vanilla Options are available for more than 40 currency crosses including Gold and Silver, and Forex Touch Options are available on six of the most traded currency crosses.
Top 5 reasons to trade FX Options with Saxo Bank:
- Streaming live prices with high thresholds for automatic execution.
- Sharp pricing and access to deep liquidity.
- Broad instrument coverage, and flexible expiries from 1 day to 1 year, including broken dates.
- Automatic exercise and settlement on expiry.
- Free FX Options position reports.
Trade FX Options on live streaming prices Saxo Bank provides deep liquidity and immediate trade execution on live streaming prices. The innovative FX Options Board covers the most liquid contracts. Other maturities are available for a fully customisable trade ticket or on a Request for Quote basis.
|Advanced trading strategies supported
||For all FX or equity traders|
|Trade on market uncertainty
||Full transparency of cost/potential payout|
|Trade market volatility (up, down, no change, any change)
||Execute simple trading strategies|
Allows for active Delta Hedging
|Avoid Trading on margin|
|Full cross margin benefits
||Choice of "Touch" and "No Touch" options|
FX Vanilla Options
FX Vanilla Options can be a useful addition to your Forex spot trading strategies, providing ways to take advantage of market volatility.
When trading Vanilla Options you can:
- Trade on changes in market direction as well as markets without clear direction
- Trade on changes in market volatility
Trade Forex Vanilla Options with a market leader
Saxo Bank is one of today’s leading interbank market makers for Forex Options. We offer access to a deep liquidity pool with automated execution on live, streaming prices up to 10,000,000 units of notional currency. Take advantage of competitive pricing and tight spreads on Vanilla Options on more than 40 currency crosses, including Gold and Silver against the US Dollar.
Customise your FX Options Trading
Saxo Bank offers you significant flexibility when trading FX Vanilla Options.
Before placing a trade in FX Vanilla Options you can choose a strike and date of expiration from short dated up to 1 year maturities.
For FX Vanilla Options that are “in-the-money” at expiry, Saxo Bank automatically exercises the Option position into a spot position. You may choose to have your expiring Vanilla Option position cash settled. If the cash exercise method is chosen, the received spot position is automatically closed at mid-price of the current spread – even in volatile markets.
Touch options are exotic options, more specifically a type of Binary options. Saxo Bank offers trading on live streaming prices in our 6 most popular currency pairs as both one touch and no touch options.
Is the EURUSD going up? How far?
Touch Options are a simple alternative to trading Forex on spot or Vanilla Options. It is the perfect tool for expressing your opinion about future price moves of a particular currency pair. All you need to do is decide if the price of the currency pair will reach (or not reach) a price level of your choosing and the potential payout should you be correct.
Live streaming prices provide you with full transparency
The potential payout and initial premium paid or received are fully transparent and visible before the trade is placed, making this type of Forex Options the preferred choice for many traders and investors. Touch Options at Saxo Bank are unique because they can be bought or sold on live streaming market prices even before they expire or exercise.
Put a limit on your potential loss
When opening a Touch Option position there is a limit to your potential loss; when you buy an Option it is the Premium and when you sell an Option, it is the payout amount minus the premium you received. At the same time you do not have to worry about manually exercising the option if and when the Trigger level is reached, this happens automatically and the Option is cash exercised directly to your account. Read more about the trading terms and conditions.
Innovative FX Options tools
To give you the best FX Options trading experience, Saxo Bank has launched a series of innovative tools - most of them available directly from the trading platform. Each one is uniquely designed to give you the best trading experience possible and to enable you to execute your trading strategy confidently.
Trade with the innovative FX Options Board
Building on the legacy of Saxo Bank’s award-winning trading platforms, our unique tool for trading FX Options – the FX Options Board - combines powerful performance with a user friendly interface to deliver a truly innovative view of the Forex Options market.
Now more than ever, you can combine the benefits of online FX trading – including streaming liquidity, leverage and access to the largest globally traded market – with the added flexibility that Forex Options provide for trading any market movement.
Discover the full FX Options Board, or get a snapshot of the current FX Options Board prices at Tradingfloor.com
Analyse your portfolio with the FX Options Report
Managing your FX portfolio is easier than ever with Saxo Bank’s free FX Options Report, the essential analysis tool from Saxo Bank. Now you can take an in-depth look at your FX and FX Options positions across multiple currency pairs with the same type of analytics used by professional interbank FX Options traders, so you can manage your risk exposure more efficiently and ensure that your market view is accurately reflected in your trading.
Read more about the FX Options Report.
FX Options Analytics - Retail Positioning
Saxo Bank publishes free aggregated client positioning data. Instantly see the current market sentiment on your preferred currency cross. Compare the ratio between Long Calls/Short Puts and Long Puts/Short Calls on the most traded FX Options including gold and silver.
Learn more about FX Options Retail Position Ratios or get a snapshot of the latest live data on Tradingfloor.com.
FX Options Analytics - other tools
Saxo Bank publishes free at-the-money (ATM) Implied Volatility data for the most traded FX Options crosses, as well as 25-Delta Risk Reversals showing the difference in volatility between puts and calls on the most traded out-of-the-money FX Options.
Similar to the Implied Volatility, significant changes give traders an indication of a shift in market expectations of future price variability in the underlying Forex spot market.
Saxo Bank also publishes over-the-counter (OTC) Volume Index showing the volume traded in the past 24-hours versus a rolling one month daily average.
The Market Pin Risk reports shows positions of significant size in the FX Options market which can have an influence on the underlying forex spot rate.
Learn more about FX Options Analytics tools or go straight to Tradingfloor.com for snapshots of latest live data.