Forex Options Trading Rates
| Forex Options | Ticket Fee Threshold |
|---|---|
| AUDJPY | 100,000 |
| AUDNZD | 100,000 |
| AUDUSD | 100,000 |
| CADJPY | 100,000 |
| CHFJPY | 100,000 |
| CHFTRY | 100,000 |
| EURAUD | 100,000 |
| EURCAD | 100,000 |
| EURCHF | 100,000 |
| EURCZK | 100,000 |
| EURGBP | 100,000 |
| EURHUF | 100,000 |
| EURJPY | 100,000 |
| EURNOK | 100,000 |
| EURNZD | 100,000 |
| EURPLN | 100,000 |
| EURSEK | 100,000 |
| EURTRY | 50,000 |
| EURUSD | 50,000 |
| GBPCAD | 100,000 |
| GBPCHF | 100,000 |
| GBPJPY | 100,000 |
| GBPUSD | 50,000 |
| NZDUSD | 100,000 |
| USDCAD | 100,000 |
| USDCHF | 50,000 |
| USDHUF | 50,000 |
| USDJPY | 50,000 |
| USDNOK | 100,000 |
| USDPLN | 100,000 |
| USDSEK | 100,000 |
| USDTRY | 50,000 |
| USDZAR | 250,000 |
| 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.
