FX Vanilla Options are available for 45 currency crosses including gold and silver. FX BinaryTouch Options are available on six of the most traded currency crosses.

Trade the most liquid FX Options on the innovative FX Options Board, providing a series of standard maturity dates and strikes, that make it easier and more intuitive to navigate the most liquid Forex Options. Standardized dates means deeper liquidity and competitive pricing.
 
Prices to institutional clients are negotiable and dependant on volumes. Contact us to find out more. 

With Saxo Bank’s free FX Options Report, you can take an in-depth look at your FX and FX Options positions across multiple currency pairs, giving you the insights you need to manage your risk exposure and maximize opportunities in your trading.
 
 

FX Vanilla Options

Pricing model

The pricing model Saxo Bank applies for FX Vanilla Options is the Black-Scholes model. 

 

Spreads are variable depending on maturity and currency pair. Prices are shown as dynamic bid/ask spreads.

 

See full list of current FX Vanilla Options spreads below.​

Trade on quotes, with no slippage

Option prices are live streamed quotes, available up to the auto execution limits. Trades will be executed automatically with no slippage. Other amounts are available on an RFQ basis.

 

Saxo Bank does not charge you for requesting a quote from a dealer.

List of all FX Vanilla Options and Spreads

 

The listed FX Options spreads are for 30 day at-the-money options. Spreads for other strikes and maturities will vary. 

 

 

See all fx options spreads with live updates  

 

Saxo Bank reserves the right to apply different spreads for notional amounts exceeding market standard.

Margin Profile

The margin requirements for FX Vanilla option at Saxo Bank consider account changes in:
  • Volatility
  • Spot price of the underlying asset
  • Already open spot, vanilla and forwards positions

Delta and Vega Margin

The margin requirement of an FX Vanilla option position is:
Margin Required = Delta Margin + Vega Margin​​
 
The margin requirements for FX Vanilla option positions at Saxo Bank consists of two components:
  • Delta Margin - changes in the underlying Forex spot rate
  • Vega Margin - changes in the volatility of the underlying Forex cross.

When calculating the Delta Margin requirement for a new FX option position, all of the portfolio’s current spot exposures at the client's account with Saxo Bank including any sub-accounts - both open FX spot and forwards positions and FX option spot exposures – are considered

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FX Touch Options​

Pricing Model

The pricing model Saxo Bank uses is similar to the one we apply to Vanilla Options (based on Black-Sholes model). Spreads are variable depending on maturity and currency cross.

 

The pricing displayed on your trading platforms is dynamic bid/ask spreads, quoted as a percentage of the potential payout, reflecting the market's expectation of the probability that the spot rate will reach (or not reach) the trigger (or barrier) level prior to expiry.​

 

Touch Options are traded on live streaming prices from 100 up to 25,000 units of base currency of potential Payout. Other amounts are available on an RFQ basis. This will generate a two-way live quote in your platform.

 

There is no minimum ticket fee or commission associated with trading FX Touch Options with Saxo Bank.

Premium

At Saxo Bank FX Binary Touch Options can be either bought or sold.

Trading Long

 

When buying an option, you have to pay the full Premium in cash. The Premium is subtracted from the Cash Balance (initially shown as 'Transactions not booked'. At the end of the day it is subtracted from the Cash Balance).

The current value (positive) of the bought position is displayed in 'Non-margin positions' and subtracted from 'Not available as margin collateral'. Thus, you cannot use the value of Binary Touch Options for margin collateral.

Trading Short

When selling an option, The Premium is added to the Cash Balance (initially shown as 'Transactions not booked'. At the end of the day it is added to the Cash balance). You need to have the cash sufficient for the potential payout in the event of an exercise (One Touch) or expiry (No Touch).

 

The current value (negative) of the sold position is displayed in 'Non-margin positions'. In order to reserve the full potential payout the difference between the current value and the potential payout is subtracted from 'Not available as margin collateral'. Hence, your full potential loss from the option payout is thus not available for margin collateral.​

At Saxo Bank FX Binary Touch Options can be either bought or sold.

Trading Long

(buying)​

When buying an option, you have to pay the full Premium in cash. The Premium is subtracted from the Cash Balance (initially shown as 'Transactions not booked'. At the end of the day it is subtracted from the Cash Balance).​

The current value (positive) of the bought position is displayed in 'Non-margin positions' and subtracted from 'Not available as margin collateral'. Thus, you cannot use the value of Binary Touch Options for margin collateral.​

Trading Short

(selling)​

When selling an option, you need to have the cash sufficient for the potential payout in the event of an exercise (One Touch) or expiry (No Touch).The Premium is added to the Cash Balance (initially shown as 'Transactions not booked'. At the end of the day it is added to the Cash balance).

The current value (negative) of the sold position is displayed in 'Non-margin positions'. In order to reserve the full potential payout the difference between the current value and the potential payout is subtracted from 'Not available as margin collateral'. Hence, your full potential loss from the option payout is thus not available for margin collateral.​

 

Settlement and payout

At Saxo Bank Touch Option positions are cash settled automatically when they generate a Payout. The Payout is 100% of the base currency. If the Option expires without exercising, then the Payout is 0%.

One Touch Options will generate the payout automatically if and when triggered before the expiry time, or else (if the barrier has not been reached) automatically expire at 10 am EST on the expiry date. No Touch options will generate an automatic payout if barrier has not been reached prior to 10 am EST on the expiry date, or else disappear automatically if trigger is reached.

Although P/L from a closed Touch Option (e.g. buying and selling an Option before it exercises/expires) will be available for use in other products margin trading, final settlement is done at the end of day (EOD), as in the way Vanilla Options are settled.

Margin Effect

Though Touch Options are not margin products, positions will affect the amount you have 'Available for Margin Trading' as seen in your Account Summary. 

 

Therefore, if margin positions are held on the account, the 'Margin Utilization' will increase when adding Touch Option positions. 

 

Note that before opening the position a pre-check will be done to ensure that you cannot accidentally open a Touch Option position that will move the Margin Utilization above 100%.


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