Pricing Model For Forex Options
Vanilla Options prices
Being a global market leader in the OTC foreign exchange Options trading, Saxo Group provides you with access to liquidity and streaming prices. Option prices are shown on your trading platforms as dynamic Bid/Ask spreads. The options’ bid/ask spreads are of variable nature and depending on liquidity and conditions.
Samples of current live FX Vanilla Options spreads, updated every hour are available under 'Spreads'
The pricing model Saxo Capital Markets 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. Expiry up to 1 year.
Spreads are variable depending on available liquidity and market conditions. Prices are shown as dynamic bid/ask spreads.
The quoted FX Options spreads are for 30 day at-the-money options. Spreads for other strikes and maturities will vary.
See all FX options spreads with live updates
Saxo Capital Markets reserves the right to apply different spreads for notional amounts exceeding market standard or for customers requiring a specific level of service.
Maximum streaming notional amount is 25 million units of base currency; with a minimum ticket size of 10,000 on currency pairs; and for precious metals 10 oz (Gold) and 100 oz (Silver).
Notional amounts over maximum streaming amount are request for quote (RFQ).
Small trade sizes incur a 'Minimum Ticket fee' of USD10 or equivalent in another currency. A small trade that attracts a Minimum Ticket fee is any trade below the 'Ticket Fee Threshold' listed below.
|FX Vanilla Option||Ticket Fee Threshold|
|AUDSGD, EURCZK, EURHUF, EURPLN, EURTRY, EURUSD, GBPAUD, GBPCAD,
GBPCHF, GBPJPY, GBPUSD, USDCAD, USDCHF, USDHUF, USDILS, USDJPY,
USDMXN, USDPLN, USDSGD, USDTRY, USDZAR, USDRUB, EURRUB
|AUDJPY, AUDNZD, AUDUSD, CADJPY, CHFJPY, EURAUD, EURCAD,
EURCHF, EURGBP, EURJPY, EURNOK, EURNZD,
EURSEK, NZDJPY, NZDUSD, USDNOK, USDSEK
Amount is expressed as the potential payout. Maximum streaming notional amount is 25,000 units of base currency, with a minimum ticket size of 100 units. The price is expressed as a percentage of the payout in the first currency, with tradable tenors from 1 day to 12 months. Notional amounts over maximum streaming amount are request for quote (RFQ).
FX Options are available on live streaming bid and ask prices. Spreads vary depending on available liquidity and market conditions. The pricing displayed on your trading platform is dynamic bid/ask spreads, quoted as a percentage of the potential payout, reflecting the market's expectation of the probability that the spot rate will reach (or not reach) the trigger (or barrier) level prior to expiry.
An option is categorised as a red product as it is considered an investment product with a high complexity and a high risk.
Saxo Capital Markets is required to categorise investment products offered to retail clients depending on the product’s complexity and risk as: green, yellow or red. Please refer to our "Product Risk Categorisation".