Pricing

Vanilla Options


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 Bank 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 1Level 2Level 3
Volume USDm (average monthly)0 - 5050 - 100> 100
SpreadClassicPremiumPlatinum

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.

For example:

  • 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.

View Live Spreads

Saxo reserves the right to apply different spreads for notional amounts exceeding market standard or for client requiring a specific level of service.

Trades cannot be executed below the minimum trade size. Minimum trade sizes are as follows:

  • XAUUSD: 10 Oz

  • XAGUSD: 100 Oz

  • NOKSEK: 50,000 NOK

  • All other currency pairs: 10,000 units of base currency

Request for Quote (RFQ) on amounts above the maximum streaming amount (currently 25,000,000 units of base currency) 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.

Touch Options


Saxo’s FX Touch option offering provides the possibility to both buy and sell One Touch and No Touch options, giving clients the opportunity to express a directional view in two different ways.

The holder of an option (long) pays a premium and possibly receives a payout. The writer of an option (short) receives the premium and possibly has to pay the payout. The pricing model that Saxo uses is similar to the one applied to Vanilla options (based on Black-Scholes model), with the price being expressed as a percentage of the potential payout. Spreads may vary depending on the life of the option and the currency pair.

The maximum streaming amount is 25,000 units of base currency, with a minimum ticket size of 100 units. Notional amounts above the maximum streaming amount are available on a Request for Quote (RFQ) basis. Tradable tenors from 1 day to 12 months.

The price of a Touch option is called the Premium and is expressed as a percentage of the potential payout. For instance, for a notional size of 1,000 and a price of 10%, the Premium will be 100 units of base currency and the Payout will be 1,000 units of base currency. For long positions you pay the premium and for short positions you receive the premium.

Example:

  • You are looking for a potential payout of EUR 1,000 if EURUSD touches 1.1500 within two weeks. The premium of the One Touch option is 20%.

  • You pay EUR 200 (EUR 1,000 x 20%) for the option.

  • If the EURUSD spot price touches 1.1500 before it expires you receive the pay-out of EUR 1,000 (net profit of EUR 800).

  • If it doesn't reach the trigger level of 1.1500 your loss on the trade is the initial premium you paid for the option (EUR 200).

At Saxo Bank FX Touch options can be either bought or sold.

Trading Long (buying)
When buying an option, you have to pay the full Premium in cash. The Premium is subtracted from the Cash Balance (initially shown as 'Transactions not booked'. At the end of the day it is subtracted from the Cash Balance).

The current value (positive) of the bought position is displayed in 'Non-margin positions' and subtracted from 'Not available as margin collateral'. Thus, you cannot use the value of Touch options for margin collateral.
Trading Short
(selling)
When selling (writing) an option, you need to have the cash sufficient for the potential payout in the event of an exercise (One Touch) or expiry (No Touch). The Premium is added to the Cash Balance (initially shown as 'Transactions not booked'. At the end of the day it is added to the Cash balance).

The current value (negative) of the sold position is displayed in 'Non-margin positions'. In order to reserve the full potential payout the difference between the current value and the potential payout is subtracted from 'Not available as margin collateral'. Hence, your full potential loss from the option payout is thus not available for margin collateral.
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Risicowaarschuwing voor FX-opties

Opties worden geclassificeerd als rood product omdat ze worden beschouwd als complex beleggingsproduct met een hoog risico.

Let op: het potentiële verlies bij de aanschaf van Foreign Exchange-opties is het premiebedrag dat voor de optie is betaald, plus eventuele kosten en transactietoeslagen, als de optie de uitoefenprijs niet haalt op de vervaldatum

Bepaalde optiemarkten werken op basis van een marge, waaronder kopers op het moment van aankoop niet de volledige premie voor de optie hoeven te betalen. In deze situatie moet u vervolgens mogelijk premie bijbetalen om de marge aan te vullen. Als u daaraan niet voldoet, kan uw positie worden gesloten of geliquideerd.

Als u een optie schrijft, is het risico aanzienlijk groter dan wanneer u een optie koopt. U bent mogelijk aansprakelijk voor de marge om uw positie te behouden en het verlies kan aanzienlijk hoger zijn dan de ontvangen premie.

Als u een optie schrijft, accepteert u de wettelijke verplichting om de onderliggende assets te kopen of te verkopen als de uitvoering van de optie negatief voor u is, ongeacht hoever de marktprijs afwijkt van de uitoefenprijs. Als u al eigenaar bent van de onderliggende assets waarvoor het verkoopcontract geldt, is uw risico beperkt.

Als de onderliggende assets niet uw eigendom zijn, kan het risico onbeperkt zijn. Alleen ervaren handelaren zouden het schrijven van ongedekte posities moeten overwegen, en alleen na zich volledig op de hoogte te hebben gesteld van de geldende omstandigheden en mogelijke risico's.

Deense banken zijn verplicht om beleggingsproducten die worden aangeboden aan consumenten, te categoriseren aan de hand van de complexiteit en het risico als: groen, geel of rood. Klik hier voor meer informatie