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.
|Poziom 1||Poziom 2||Poziom 3|
|Wolumen w mln USD (średni, miesięczny)||0–50||50–100||>100|
Ceny zależne od wolumenu opcji walutowych są korzystne dla klientów bez względu na wolumen transakcji, ponieważ uwzględniają to, że bywa on zmienny. Naliczamy standardowy spread „Classic”, a wraz ze wzrostem wolumenu transakcji plan zapewnia coraz korzystniejsze spready.
- Jeśli przeprowadzisz transakcje na ponad 50 mln USD, zostanie dla Ciebie naliczony spread Premium od transakcji o wolumenie do 100 mln USD.
- Jeśli przeprowadzisz transakcje na ponad 100 mln USD, zostanie dla Ciebie naliczony spread Platinum od transakcji o wolumenie powyżej 100 mln USD.
Spread jest definiowany jako różnica pomiędzy ceną sprzedaży (Bid) a ceną kupna (Ask). Spready mogą się różnić w zależności od ważności opcji i par walutowych.
Saxo zastrzega sobie prawo do stosowania różnych spreadów w odniesieniu do hipotetycznych ilości wykraczających poza standard rynkowy lub w stosunku do klienta wymagającego specyficznego poziomu obsługi.
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.
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 equest for Quote (RFQ) basis. Tradeable 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.
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.
|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.
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.