FX Options Trading
Our clients enjoy access and live-streaming to prices for 45 OTC FX Options through our cutting-edge FX Options Board, allowing investors to trade in real-time.
FX Options Trading. Why Saxo Capital Markets?
As a Saxo Capital Markets client, you can:
- Trade 45 FX Options including Gold and Silver against the US dollar
- Trade the majority of our FX Vanilla Options OTC without dealer intervention
- Enjoy low margin requirements with professional netting calculations for hedging spot positions
- View your net positions and get live prices on Maturities, Deltas and Strikes direct to your trading platform via our cutting-edge FX Options Board
- Currency Options expiries from short dated to one year
What exercise methods are available?
We offer support for New York cut FX Options with expiry at 10:00 New York time. Any FX Options that are 'in-the-money' at this time are exercised automatically by us and converted into spot positions for your convenience.
You can also choose to have us exit the spot position automatically when the option expires. When a cash exercise method is chosen, the received spot position is exited at mid-price of the current spread – even in volatile markets.
FX Vanilla Options
FX Vanilla Options can be a useful addition to your Forex spot trading strategies, providing ways to take advantage of market volatility.
When trading Vanilla Options you can:
- Trade on changes in market direction as well as markets without clear direction
- Trade on changes in market volatility
Trade Forex Vanilla Options with Saxo
We offer tailored liquidity pools with automated execution on live, streaming prices up to 10,000,000 units of notional currency. Take advantage of competitive pricing and tight spreads on Vanilla Options on more than 40 currency crosses, including Gold and Silver.
Tailor your FX Options Trading
Saxo Capital Markets offers you significant flexibility when trading FX Vanilla Options.
Before placing a trade in FX Vanilla Options you can choose a strike and date of expiration from short dated up to 1 year maturities.
For FX Vanilla Options that are 'in-the-money' at expiry, Saxo Capital Markets automatically exercises the Option position into a spot position. You may choose to have your expiring Vanilla Option position cash settled. If the cash exercise method is chosen, the received spot position is automatically closed at mid-price of the current spread – even in volatile markets.
Innovative FX Options tools
To give you the best possible FX Options trading experience, Saxo Capital Markets has launched a series of innovative tools - most of them available directly from the trading platform. Each one is designed to enable you to execute your trading strategy with ease.
Innovative FX Options Board allows you to:
- Benefit from tighter spreads and tailored liquidity - due to pre-defined strikes and maturity dates
- See your net open positions directly on the Options Board
- Continuously monitor prices on multiple contracts
Discover the full FX Options Board here.
FX Options Analytics - Retail Positioning
Saxo Capital Markets publishes free aggregated client positioning data. Instantly see 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.
FX Options Analytics - other tools
Saxo Capital Markets publishes free at-the-money (ATM) Implied Volatility data for the most traded FX Options crosses, as well as 25-Delta Risk Reversals
showing the difference in volatility between puts and calls on the most traded out-of-the-money FX Options.
Similar to the Implied Volatility, significant changes give traders an indication of a shift in market expectations of future price variability in the underlying Forex spot market.
Saxo Capital Markets also publishes over-the-counter (OTC) Volume Index
showing the volume traded in the past 24-hours versus a rolling one month daily average.
The Market Pin Risk reports
shows positions of significant size in the FX Options market which can have an influence on the underlying forex spot rate.
Trade FX Options on live prices with available liquidity of a Market Maker via our parent company Saxo Bank. Saxo Capital Markets offers one type of FX Option:
Indicative FX Options spreads for one month maturity*
Premium spreads are available to clients trading more than 7 mio EUR notional a month in FX Options and clients with a Premium account. For Platinum spreads a Platinum account or more than 25 mio EUR notional a month is required.