For most Vanilla Forex Options, trading can be executed on live prices, without the need for dealer intervention. For exotic currency pairs or multiple leg Options, clients may request tradable price quotes by contacting the Market Making Desk through our online platforms.
Saxo Bank offers support for New York cut Forex Options with expiry at 10:00 New York time. Any Options that are “in the money” at this time are exercised automatically by Saxo Bank and converted into spot positions for the client’s convenience.
What are Forex Options?
Forex Options trading offers investors the right, but not the obligation, to buy (Call Option) or sell (Put Option) a specified currency pair at a pre-determined strike price and expiry date. An upfront premium is paid for this right to trade the underlying asset and, depending on market conditions, the Option buyer can choose to exercise the right to buy or sell when the Option expires. With Forex Options trading, investors can profit whenever currency pairs move higher or lower.
More flexible than exchange-traded Options, Saxo Bank’s OTC (Over the Counter) Options allow traders to choose the strike price, expiry date and trade size. Forex Options trading is available from Monday’s New Zealand opening to the Friday close in New York and offers the same high liquidity as our online spot Forex offering.
Online FX Options trading
A Saxo Bank online trading account is an indispensible tool for today’s professional Forex trader, providing access to currency Options trading, spot Forex and FX Forward Outrights. Saxo Bank remains one of the only online providers to offer Forex Options trading on live streaming prices through our suite of online trading platforms
For more information, please visit our Forex Options rates and conditions page.