Forex Options Trading Rates

Forex OptionsTicket Fee Threshold
AUDJPY100,000
AUDNZD100,000
AUDUSD100,000
CADJPY100,000
CHFJPY100,000
CHFTRY100,000
EURAUD100,000
EURCAD100,000
EURCHF100,000
EURCZK100,000
EURGBP100,000
EURHUF100,000
EURJPY100,000
EURNOK100,000
EURNZD100,000
EURPLN100,000
EURSEK100,000
EURTRY50,000
EURUSD50,000
GBPCAD100,000
GBPCHF100,000
GBPJPY100,000
GBPUSD50,000
NZDUSD100,000
USDCAD100,000
USDCHF50,000
USDHUF50,000
USDJPY50,000
USDNOK100,000
USDPLN100,000
USDSEK100,000
USDTRY50,000
USDZAR250,000
XAUUSD*100
XAGUSD*100

Forex Options Trading Conditions

Target Bid/Ask Spreads and Autoexecution

A variable bid / ask spread and autoexecution limit pricing model is used for currency options. This means current, two-way, competitive market consistent pricing is always provided. As both the bid and ask price are quoted, the current spread is always visible to the client when requesting an option price.

Ticket Fees

For trades below the Ticket Fee Threshold, a small ticket fee of USD 10 is added to the trade to cover administration costs.

Forex Options Margin Requirements

Margin requirements for Forex Option positions take into account changes in:

  • Volatility
  • Spot price of the underlying asset
  • Open positions (that effectively reduce the risk associated with your Options positions)

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 expiry date for the Forex Option is.

Margin Calculations

Margin requirements for Forex Options consist of a:

  • Delta Margin which is related to the exposure due 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 Forex Options with lowered margin requirements.

Exercise procedure

Forex 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 the time of exercise, the exercised position will be netted out on the following day.

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