Forex Options Prices
The value of your investments can go down as well as up.
Losses can exceed deposits on margin products. Please ensure you understand the risks.
Vanilla Options prices
Saxo’s FX Vanilla option offering provides the possibility to both buy and sell European style options, giving clients the opportunity to express a directional view in two different ways. FX options not only enable clients to express a directional trading view but also offer more alternatives in relation to controlling risk, in addition to a traditional stop loss order.
The holder of an option (long) pays a premium for the right to exercise the option at a profit, or let the option expire with no further obligation. The writer of an option (short) receives the premium and assumes the possible liability of having to pay the difference between the strike price and market price at maturity.
The pricing model Saxo applies for FX Vanilla options is based on an implied volatility surface for the Black-Scholes model. The price is calculated in pip terms of the 2nd currency. Pricing is available for options with maturities from 1 day to 12 months, providing you with maximum flexibility to implement your trading strategies and market views.
|Level 1||Level 2||Level 3|
|Volume USDm (average monthly)||0 - 50||50 - 100||> 100|
FX Option Volume-based Pricing serves low-volume traders equally as well as it does high-volume traders. We charge a standard ‘Classic’ spread, with the benefit of improved spreads for larger cumulative trading volume.
- If you trade over 50 million USD, you will be charged a Premium spread on volume traded up to 100 million USD
- If you trade over 100 million USD, you will be charged a Platinum spread on volume traded in excess of 100 million USD
The spread is defined as the distance between the bid/ask price. Spreads may vary depending on the life of the option and the currency pairs.
Saxo reserves the right to apply different spreads for notional amounts exceeding market standard or for client requiring a specific level of service.
Trades can not be executed below the minimum trade size. Minimum trade sizes are as follows:
XAUUSD: 10 Oz
XAGUSD: 100 Oz
NOK/SEK: 50,000 NOK
All others: 10,000 units of base currency
Request for Quote (RFQ) on amounts above the maximum streaming amount will be executed manually by the FX trading desk.
Note. Maximum streaming amounts are subject to change without prior notice.
From 12th March 2018 small trade sizes will incur a minimum ticket fee of 10 USD. A small trade size is any trade below the commission threshold which for most currency pairs is 50,000 units of base currency, however variations occur. Full details on minimum commission thresholds can be found here.
Key Information Documents
All trading carries risk. To help you understanding the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more
Additional Key Information Documents are available in our trading platform.
Saxo Capital Markets' FX Vanilla Options spreads vary by the account service level, i.e. Classic, Premium and Platinum and by a currency pair.
The pricing displayed on your trading platforms is characterised by the account type that has been configured for you when opening the account.