Forex Option Rates
| Forex Options |
1) Target Spread (PIPs) |
Autoexecute* |
2) Ticket Fee Threshold |
| AUDJPY |
10 |
0.50 m |
100,000 |
| AUDNZD |
11 |
0.20 m |
100,000 |
| AUDUSD |
7 |
1.20 m |
100,000 |
| CADJPY |
12 |
0.50 m |
100,000 |
| CHFJPY |
10 |
0.50 m |
100,000 |
| CHFTRY |
50 |
RFQ |
100,000 |
| EURAUD |
13 |
0.30 m |
100,000 |
| EURCAD |
16 |
0.30 m |
100,000 |
| EURCHF |
10 |
5.00 m |
100,000 |
| EURCZK |
60 |
0.20 m |
50,000 |
| EURGBP |
7 |
5.00 m |
100,000 |
| EURHUF |
65 |
0.20 m |
50,000 |
| EURJPY |
11 |
2.50 m |
100,000 |
| EURNOK |
65 |
0.30 m |
100,000 |
| EURNZD |
25 |
0.30 m |
100,000 |
| EURPLN |
60 |
0.30 m |
50,000 |
| EURSEK |
60 |
0.30 m |
100,000 |
| EURTRY |
45 |
RFQ |
50,000 |
| EURUSD |
7 |
7.00 m |
50,000 |
| GBPCAD |
25 |
0.20 m |
100,000 |
| GBPCHF |
17 |
1.25 m |
100,000 |
| GBPJPY |
18 |
1.25 m |
100,000 |
| GBPUSD |
10 |
1.50 m |
50,000 |
| NOKSEK |
30 |
5.00 m |
1,000,000 |
| NZDJPY |
15 |
0.50 m |
100,000 |
| NZDUSD |
8 |
0.50 m |
100,000 |
| USDCAD |
10 |
1.00 m |
100,000 |
| USDCHF |
7 |
5.00 m |
50,000 |
| USDHUF |
70 |
0.00 m |
50,000 |
| USDJPY |
7 |
5.00 m |
50,000 |
| USDNOK |
50 |
0.30 m |
100,000 |
| USDPLN |
45 |
0.20 m |
50,000 |
| USDSEK |
50 |
0.30 m |
100,000 |
| USDTRY |
32 |
0.20 m |
50,000 |
| USDZAR |
215 |
0.20 m |
50,000 |
| USDILS |
130 |
RFQ |
50,000 |
| XAGUSD |
22.50 |
0.00 m |
5,000 |
| XAUUSD |
4.25 |
0.00 m |
100 |
* m = million
The commission and margin rates referred to above may vary from time to time especially for very active or inactive customers. Saxo Bank reserves the right to amend the commission rates, brokerage fees, margin rates and interest rates referred to according to the terms of the trading agreement entered into between Saxo Bank and the Client.
Forex Option Spreads and Conditions September 15, 2008
1) Target Bid/Ask spreads
These are the target bid / ask price spreads used in normal market conditions. In quiet market conditions, the spread may be even narrower but in periods of volatile markets, the spread may be increased and autoexecution disabled.
2) Ticket fees for low-value trades
For trades below the Ticket Fee Threshold, a small ticket fee of USD 10 is added to the trade to cover administration costs.
The margins for Forex options are also subject to a volatility factor that may increase the margin requirements. This factor will be more prominent the longer the option expiry date.
Forex Options Margin Requirements
Margin requirements for Forex Option positions which take into account changes in:
- volatility
- spot price of the underlying asset.
- open positions (that effectively reduce the risk associated with your Options positions).
Margin Calculations
Margin requirements for Forex options consist of a
- Delta Margin which is related to the exposure to changes in the spot market
- Vega Margin which is related to changes in the volatility of the underlying spot Forex cross
This allows you to hedge spot positions with options with lowered margin requirements. This service, previously only offered to Professional Traders, is now available to retail traders.
Exercise procedure
Options that are 'in the money' are automatically exercised at 10.00 A.M. New York time (New York cut) on the day of expiry where they are converted to a spot position. This spot position is subject to the usual profit/loss if the spot price moves from the exercise price. If you already have an offsetting position at exercise, the exercised position will be netted out on the following day.
* Spot Gold and Silver Trade Times
Spot Gold and Spot Silver options can be traded live from 24:00 and 21:00 GMT. Outside this time, Market Orders are available to trade as soon as possible but we accept no responsibilities for price slippage between the close and open prices on the next days trading.