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.
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 pair.
See all live FX options spreads for 30 day at-the-money options.
Saxo reserves the right to apply different spreads for notional amounts exceeding market standard or for clients 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.
Small trade sizes 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 can be found here.
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".