Forex Options at Saxo Bank
Saxo Bank is the first FX Option trading provider to offer trading of FX options directly on live streaming prices, without dealer intervention, to private investors.
Saxo Bank offers Over the Counter (OTC) plain vanilla European style Forex options in 38 major currency crosses, traded online through our SaxoTrader trading platform.
Forex Options at Saxo Bank
- Forex Options for 38 Currency Pairs
- 31 FX Options traded directly on live streaming price quotes (no dealer intervention)
- Gold and Silver options
- Low margin requirements with professional netting calculation for hedging spot positions
- Automatic exercise of options on expiry
- Use other investments (including stocks and bonds) as collateral for options trading
Options Trading on Live Price Quotes
Options for 31 major Forex crosses are traded directly on live price quotes without dealer intervention. For other crosses, SaxoTrader offers good price indications.
For options with expiries outside 1 week to 6 months, exotic and multiple leg options, prices are quoted by a dealer on request.
Low Margin Requirements
Option margins are calculated taking into account:
- Delta margin related to the related exposure in the spot market
- Vega margin related to changes in volatility of the underlying spot Forex
- Any open related spot positions
This margin calculation offers lower requirements for options used to hedge spot positions — a service previously only offered to professional traders.
Exercise/Expiry
Saxo Bank supports New York Cut options which expire at 10:00 A.M. New York Time. Options that are in-the-money at expiry, are automatically exercised and converted to a spot position without the need for any intervention from you.