Stock Options

FAQ Stock Options

1. What happens with the Stock Option position once it gets exercised /expires?

The Stock Option position always gets exercised into a specific stock position that is visible on the Account Summary.

2. What if the Exchange deactivates the underlying asset?

If the Exchange at which the Stock Option is traded deactivates the underlying asset, Saxo Bank has to notify its clients and remove the related positions from the clients trading accounts.

3. Do clients have an access to trade Stock Options on live streaming prices?

Clients will be enabled to trade Stock Options on live streaming prices as long as they subscribe to the exchanges data.

4. Are clients allowed to trade Stock Options short?

Clients on the advanced profile can trade Stock Options short.

5. What are clients’ possibilities to exercise a Stock Option?

Clients can exercise American Style Stocks Options anytime. One should bear in mind that if the margin utilization level is not sufficient, the exercise prior to expiry might be blocked.

6. What is required to be able to trade Stock Options?

Stock Options are classified as a complex product. Thus, clients have to fulfill a Suitability Test in order to be enabled for trading Stock Options.

7. Which products are covered with Stock Options?

Initially Saxo Bank launches Stock Options on the 200 most active Stock Options across US, Europe and APAC.

8. Are contract specifications on Stock Options defined by Saxo Bank and universal for all the instruments?

No, Stock Options specifications are instrument-specific and defined by the Exchange and the Clearing House

9. Are there specific rules related for Introducing Brokers who enter block orders on Stock Options?

Yes, when Introducing Broker place block orders, the posting mode is verified against the individual client positions participating in the block order as listed in the allocation key.

10. How can a client turn his position from being long to short on Stock Options?

When a client wants to turn a positions, e.g. from long to short, the client need to close the open position first and then open a position on the opposite side.