FX Vanilla Options

Forex Options

MORE FOREX TRADING OPPORTUNITIES

FX Vanilla Options are a great alternative to your Forex spot trading strategies. By trading Vanilla Options you can benefit from market uncertainty and changes in market volatility as these instruments allow you to generate many new trading ideas whether on the rising or falling market as well as markets without any specific direction.


TRADE FX VANILLA OPTIONS WITH A MARKET MAKER

As one of today’s leading interbank market makers for Forex Options, Saxo Bank offers you access to a deep pool of liquidity with automated execution on live streaming prices up to 10,000,000 units of notional currency. With Saxo Bank you can benefit from trading on competitive pricing and tight spreads on Vanilla Options on more than 40 currency crosses, including Gold and Silver against the US dollar.

 

ADVANTAGES OF TRADING FX VANILLA OPTIONS WITH SAXO BANK

  • Streaming prices on 40+ crosses with liquidity up to 10 million units of notional currency
  • Dynamic Pricing based on interbank implied volatility and other market parameters
  • Gold & Silver FX Vanilla Options
  • Automatic exercise and settlement
  • Choice of exercise method – either as an FX spot position or Cash exercise
  • Customised strikes and maturities – expiries from 1 day to 1 year
  • Variable Margin method (Delta & Vega) provides an effective, realistic picture of necessary collateral
  • New OTC FX Options Analytics published three times a day
  • FX Options Board brings an innovative and efficient tool to Forex trading
  • RFQ support on larger traded amounts from 10 milion by a dedicated FX and FX Options Trading Desk

CUSTOMISED STRIKES, MATURITIES AND EXERCISE METHOD

Saxo Bank offers you significant flexibility when trading FX Vanilla Options. Thus prior to 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. In addition to this, 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.

FX BINARY TOUCH OPTIONS – SIMPLER ALTERNATIVE TO TRADING FOREX

Binary Touch Options are a simpler alternative to trading Forex on spot or Vanilla Options. When trading FX Binary Touch Options, there is a limit to your potential profit or loss. Read more about FX Binary Touch Options.

SAXO BANK PUBLISHES OTC FX OPTIONS MARKET INFORMATION AND CLIENT POSITION DATA

Saxo Bank is the first to publish market information from the FX Options interbank market and client positions data for your advantage. The data, which is fed into the client’s chat and published on Saxo Bank’s analytical portal TradingFloor.com three times a day will greatly enhance your understanding and ability to profitably trade FX as an asset class. Stay updated with our FX Options Analytics.

LEARN TO TRADE FX VANILLA OPTIONS WITH SAXO BANK

Before trading FX Vanilla Options, Saxo Bank recommends that you familiarise yourself with the product’s features. TradeMentor, our free education programme hosted by professional trader and CNBC regular Tom Hougaard, will introduce you to the essentials of FX trading. You can also learn basic strategies for trading FX Options with our dedicated FX Options trading education.

Read more about FX Vanilla Options



FACTS ABOUT FX VANILLA OPTIONS

  • Derivative contracts from an underlying asset
  • OTC product with Saxo Bank as a price market maker
  • Traded on margin, Delta & Vega
  • Choice of a settlement method (FX spot or cash) up to 1 hour before expiry
  • Delta hedge dialogue

 Danish banks are required to categorize investment products offered to retail clients depending the product’s complexity and risk as: green, yellow or red.

An option is categorized as a red product as it is considered an investment product with a high complexity and a high risk.

Please refer to our Product Risk Categorisation for more details.