Most Vanilla Options can be traded directly on live streaming prices, with no dealer intervention. For other Options, including less liquid currencies and multiple leg Options, tradable live prices from our Market Making Desk can be requested with a simple mouse click.
To make Forex options trading even easier, Saxo Capital Markets supports New York cut Forex Options that expire at 10:00 New York time. Options that are ‘in the money’ on expiry are automatically exercised and converted to a spot position, without the client having to initiate any action.
What are FX Options?
Forex Option offers investor the right to either purchase (Call Option) or sell (Put Option) a currency pair at a certain price (the strike price) on a specified date (the expiry date), but there is no obligation to do so. The purchaser of the Option pays an upfront premium for the right to buy or sell the underlying asset and later chooses whether to exercise this right depending on market conditions at the time of the Option's expiry. Investors can potentially profit from Forex Options trading when a currency pair moves higher or lower.
Saxo Capital Markets' FX Options are OTC (Over the Counter) products that provide far greater flexibility than traditional exchange-traded Options and allow investors to choose their preferred expiry dates, strike prices and trade amounts. Forex Options trading is available whenever the currency markets are open worldwide and features the same in-depth liquidity as Saxo Capital Markets' spot Forex offering.
Trade Forex Options Online
An online trading account with Saxo Capital Markets is the ideal tool for professional FX traders who require access to FX Spot, Options and FX Forward Outrights. Saxo Capital Markets is one of the only brokers to offer Forex Options trading on live streaming quotes.