Trade FX Options on live prices with the available liquidity of a Market Maker.
Saxo Bank offers two types of FX Options:
- Vanilla Options
- Touch Options.
FX Vanilla Options
A Vanilla Option is a derivative financial instrument that gives the buyer the right, but not the obligation, to either buy ("Call") or sell ("Put") a predefined notional amount of a currency cross at a pre-defined price ("Strike price"), at a predefined date in the future (“Expiry date”).
The seller of the option has a corresponding obligation to fulfill the transaction should the buyer decide to “exercise” his right.
FX Touch Options
A Touch Option is a type of exotic option that gives the buyer a pre-determined payout either once a spot price of a currency cross reaches or surpasses a predetermined barrier ("Trigger price") – One Touch; or if spot never reaches the trigger level before the expiry – No Touch. These types of options allow you to set the Trigger price, the time to expiration and the payout to be received.
Trade FX Options long or short
At Saxo Bank Forex Options (both Vanilla and Touch) can be either bought or sold.
FX Options can be traded from the FX Options Board
Saxo Bank is the first FX Options trading provider to offer trading of FX Options (both Vanilla and Touch Options) from the innovative FX Options Board on live streaming prices, with no dealer intervention.
The FX Options Board covers maturities from 1 day to 6 months in standard tenors and strikes. Other maturities and strikes are available in a separate trade ticket or on a Request For Quote (RFQ) basis.
Innovative FX Options Board
- 'Click and Trade' solution built into Saxo Bank’s trading platforms
- An intuitive and customised workspace displaying both FX Touch Options and FX Vanilla Options in dedicated views
- A matrix of quotes across a wide range of standardised maturity dates and strikes
- An overview of net open positions
- Allows you to continuously monitor prices on multiple contracts