Diversify your Trading Strategy with FX Options
FX Options provide an exceptional means to diversify your trading strategies giving you a choice of investment timelines as well as hedging spot positions.
At Saxo Bank we offer two types of Forex Options: Forex Vanilla Options available for more than 40 currency crosses including Gold and Silver, and Forex Touch Options available on six of the most traded currency crosses.
Top 5 key reasons to trade FX Options with Saxo Bank:
- Live prices with no dealer intervention.
- Access to customised liquidity.
- Broad instrument coverage, expiries from 1 day to 1 year.
- Automated exercise and settlement on expiry.
- Free reports on FX Options position.
Saxo Bank enables trading FX Options on live streaming prices and offers competitive prices and tights spreads. Our innovative FX Options Board covers a range of maturities from 1 day to 6 months. For a fully customisable trade ticket, further maturities can be obtained on a Request for Quote basis.
|Advanced trading strategies supported
||For all FX or equity traders|
|Trade on market uncertainty
||Full transparency of cost/potential payout|
|Trade market volatility (up, down, no change, any change)
||Execute simple trading strategies|
Allows for active Delta Hedging
|Avoid Trading on margin|
|Full cross margin benefits
||Choice of "Touch" and "No Touch" options|
FX Vanilla Options
Complement your Forex spot strategies with FX Vanilla Options and benefit from market volatility.
With Vanilla Options you can:
- Trade on market directional changes as well as markets with no clear direction
- Trade on market volatility changes
A market leader in Forex Vanilla Option trading
Take advantage of competitive pricing spreads on Vanilla Options from one of the leading interbank market makers for Forex Options. We offer spreads on more than 40 currency crosses, including Gold and Silver against the US Dollar, as well as access to a tailored liquidity pool with automated execution on live, streaming prices up to 10,000,000 units of notional currency.
Flexible trading of FX Options
With Saxo Bank you can customise your FX Vanilla Options trading.
Choose a strike and date of expiration from short dated up to 1 year maturities before placing a trade in FX Vanilla Options.
Saxo Bank automatically exercises the Option position into a spot position for FX Vanilla Options that are “in-the-money” at expiry. You may choose to have your expiring Vanilla Option position cash settled. And have your spot position automatically closed at mid-price of the current spread – even in volatile markets.
Is the EURUSD on the rise and by how far?
Touch Options offer a simple alternative to trading Forex on spot or Vanilla Options enabling you act on your view for future price moves of a particular currency pair. You just need to decide if the price of the currency pair will reach (or not reach) your chosen price level and calculate the potential payout if you have made the right call.
Full transparency with live streaming pricesFull transparency on the potential payout and initial premium paid before the trade is placed, makes this type of Forex Option the preferred choice for many traders and investors. Saxo Bank gives you the unique benefit of buying or selling Touch Options on live streaming market prices even before they expire or exercise.
Limit your potential loss
Potential losses are limited when opening a ForexTouch Option; when you purchase an Option you receive a premium and when you sell the Option you receive the payout minus the premium. Furthermore, there is no bonus on you to manually exercise the option if and when the Trigger level is reached. This happens automatically and the cash is transferred directly into your account. Read more about the trading terms and conditions.
Innovating to optimise your trading experience
To give you the best FX Options trading experience, Saxo Bank has launched a series of innovative tools to maximise your FX Options trading experience. The majority of these are available directly from our trading platform. Each tool is uniquely designed to give you the confidence to execute your trading strategy and get the best trading experience possible.
Powerful performance at your fingertips - Trade with the innovative FX Options Board
Building on the legacy of our award-winning trading platforms, Saxo Bank’s FX Options Board combines powerful performance with an intuitive interface to deliver a unique view of the Forex Options market.
With this new and innovative tool you benefit from the powerful combination of online FX trading benefits – streaming liquidity, leverage and access to the largest globally traded market – and the added flexibility that Forex Options provide to trade any market movement.
Take a look at Tradingfloor.com to discover the full FX Options Board, or get a snaphot of the current FX Options Board prices.
FX Options Analytics - Retail Positioning
With free access to Saxo Bank’s aggregated client positioning data you can instantly view the current market sentiment on your preferred currency cross. Compare the ratio between Long Calls/Short Puts and Long Puts/Short Calls on the most traded FX Options including gold and silver.
Visit Tradingfloor.com to learn more about FX Options Retail Position Ratios, or get a snapshot of the latests live data.
FX Options Analytics - other tools
Free at-the-money (ATM) Implied Volatility data for the most traded FX Options crosses, as well as 25-Delta Risk Reversals is also available from Saxo Bank. You can view the difference in volatility between puts and calls on the most traded out-of-the-money FX Options and gain a perspective on shifts in market expectations for future price changes in the underlying Forex spot market.
Our over-the-counter (OTC) Volume Index shows the trading volume for the past 24-hours versus a rolling one month daily average.
You can assess the possible influence on the underlying forex spot rate of significant positions in the FX Options market using our Market Pin Risk reports.
To see the latest live data and learn more about FX Options Analytics tools take a look at Tradingfloor.com.