Forex Options Trading Conditions

Vanilla Options

Available for trading in 44 currency pairs, including silver and gold.

Calls (option to buy a currency at a specified strike price) and Puts (option to sell a currency at a specified strike price).

Maximum streaming amount is 25,000,000 units of base currency, with a minimum ticket size of 10,000 units. Notional amounts over the maximum streaming amount are available on a Request for Quote (RFQ) basis. 

Note. Maximum streaming amounts may be changed without prior notice under volatile or illiquid markets.

Tradable tenors from 1 day to 12 months.

Calculated in pip terms of the 2nd currency. When buying an option the maximum loss is the premium paid, but when selling an option the writer receives the premium however assumes the potential of much greater downside risk.

European-style (the option can only be exercised on the expiry date, i.e. at a single pre-defined point in time).

Expiry is an automatic process, meaning you do not have to call in to manage the exercise or expiry. If the option is in the-money it will automatically settle in the pre-defined exercise method (described in the next point), or the option will automatically expire (cease to exist) at 10am Eastern Standard Time (New York cut) on the expiry date.

 

At trade entry, you have the choice of the exercise method that will apply should the option end up in-the-money. Options can be converted into a spot position on expiry or cash settled. The cash settled exercise method is available on both long and short positions and will always be executed at the mid-price of the best bid/offer spread. This applied even in volatile market conditions. The exercise method can be modified up to one hour prior to expiry.

The margin requirement is calculated per currency pair, to align with FX Spot tiered margins, and per maturity date. Read more about Margins.

Not available. Trading is only available on live quotes.

Touch Options


EURUSD, GBPUSD, EURGBP, USDJPY, EURJPY and AUDUSD.

One Touch and No Touch options are available.

Expressed as the potential payout. 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.

Note. Maximum streaming amounts may be changed without prior notice under volatile or illiquid markets.

Tradable tenors from 1 day to 12 months.

Expressed as a % payout in the 1st currency. When buying an option the maximum loss is the premium paid, but when selling an option the writer receives the premium. The payout is reserved on account (and can not be used as collateral).

Trade barriers above or below the current spot price, in increments of 50 pips.

Unlike FX Vanilla options, Touch options are exercised when a trigger level is reached at any time prior to the expiry date. If the trigger level has not been reached, a No Touch option generates a payout, whereas a One Touch option expires automatically.

A trigger (or barrier) level is considered reached if the spot mid-price of the currency pair reaches the trigger level. 

There are safeguards in place to prevent erroneous trading. Thus, for each currency pair a 'tradability value' has been set. The rationale for this parameter is to restrict your trading when the probability of the trigger being touched (or not touched) is too close to 100%. This is done to protect the client from making a mistake, e.g. paying 100% for a One Touch or selling a No Touch when the bid is 0%. 

The current parameters are: 

Currency crossTradability value
 
Currency crossTradability value
EURGBP0.25%GBPUSD0.15%
EURJPY0.20%USDJPY0.25%
EURUSD0.15%AUDUSD0.20%

Please note that the tradability values are subject to change without prior notice. 

You are of course never restricted from closing an existing open position, no matter what the proximity of the trigger level to current spot. Closing prices may, if close to expiry, be offered on an RFQ basis only.

Example:

You want to buy a One Touch option with 3 months to expiry and the trigger (or barrier) price is 10 pips away from the market. In this case, the Premium would be 100% (or close to) and Saxo Bank will automatically reject the trade.

One Touch options will generate the payout automatically if triggered before expiry. Otherwise (if the barrier has not been touched) the option will automatically expire and cease to exist at 10am Eastern Standard Time (New York cut). No Touch options will cease to exist if triggered before expiry (the barrier level is touched). If a No Touch option has not been triggered prior to expiry, the payout will automatically be generated.

Touch option positions are cash settled automatically when they generate a payout. The payout is 100% of the base currency. If the option expires without exercising, then the payout is 0%. For a One Touch option, that is once the trigger level is reached. For a No Touch option, it is at maturity, assuming the trigger level has not been reached. 

Although profit/loss from a closed Touch option (e.g. buying and selling an option before it exercises/expires) will be available for use in trading other margin products, final settlement takes place at end of day (EOD), similar to the way Vanilla options are settled.

The FX option margin calculation does not apply.

Not available. Trading is only available on live quotes.

Touch options of same type, expiry, and payout can net out.  No other netting of Touch options is allowed.

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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