What are Forex Options?
A Forex Option gives an investor the right, but not the obligation, to either buy (Call Option) or sell (Put Option) a certain currency pair at a specified price (known as the strike) on a specified date (the expiry date). For this right to buy or sell the underlying asset, a premium is paid upfront to the seller of the Option. Whether one chooses to use, or exercise, this right is dependent upon the market conditions at the time the Option expires. Trading Forex Options makes it possible to profit when a currency pair moves higher or lower.
FX Options can be traded whenever the currency markets are open from New Zealand opening on Monday until New York closing on Friday with the same benefits of Saxo Capital Markets liquidity as with its online FX Spot trading platform. The majority of vanilla Options can be executed directly on live price quotes without dealer intervention. For other Options – including exotic currencies and multiple leg Options, the platform offers good price indications with trades quoted by a dealer on request
The spreads on Forex Options may change from option to option depending on several factors such as time to maturity and the volatility of the underlying Forex spot rate. The full list of indicative spreads can be found in the SaxoTrader and SaxoWebTrader platforms under Trading Conditions.
Trade Forex Options Online
An online trading account with Saxo Capital Markets is the ideal tool for professional FX traders who require access to FX Spot, Options and FX Forward Outrights. Saxo Capital Markets is one of the only brokers to offer Forex Options trading on live streaming quotes.
Read more about Saxo Capital Markets'
volatility-based Options pricing