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
The pricing model Saxo Capital Markets' uses for FX Vanilla Options is the Black-Scholes model.
Spreads are variable depending on maturity and currency pair. Prices are shown as dynamic bid/ask spreads.
A full list of current FX Vanilla Options spreads are available below.
|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.
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
An option is categorised as a red product as it is considered an investment product with a high complexity and a high risk.
You should be aware that in purchasing Foreign Exchange Options, your potential loss will be the amount of the premium paid for the option, plus any fees or transaction charges that are applicable, should the option not achieve its strike price on the expiry date
Certain options markets operate on a margined basis, under which buyers do not pay the full premium on their option at the time they purchase it. In this situation you may subsequently be called upon to pay margin on the option up to the level of your premium. If you fail to do so as required, your position may be closed or liquidated.
If you write an option, the risk involved is considerably higher than buying an option. You may be liable for margin to maintain your position and a loss may be sustained well in excess of the premium received.
By writing an option, you accept a legal obligation to purchase or sell the underlying asset if the option is exercised against you; however far the market price has moved away from the strike. If you already own the underlying asset that you have contracted to sell, your risk will be limited.
If you do not own the underlying asset the risk can be unlimited. Only experienced persons should contemplate writing uncovered options, then only after securing full detail of the applicable conditions and potential risk exposure.
Danish banks are required to categorise investment products offered to retail clients depending on the product’s complexity and risk as: green, yellow or red. For more information click here.
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.