Saxo Capital Markets has been facilitating Forex trading to private investors for over 14 years.

Traditionally only within reach of institutions, Saxo Capital Markets helped pioneer private Forex trading, and as industry polls show, we have risen to become one of the most popular Forex trading providers in the business.

Why trade Forex at Saxo Capital Markets

24-hour trading on live streaming prices Low trading spreads from 2 pips Commission-free trading Leverage trades up to 100 times with our low margin rates Live trading of 160+ Forex currency crosses more than any other online provider

Live online FX options trading first bank to offer trading on live price quotes to private traders Forward outright future currency transactions Servicing Asia Pacific clients in their own time zone

Live Forex Options Trading

Saxo Capital Markets offers Forex options in 26 major currency crosses with 9 major crosses traded on live price quotes. More about FX Options

Forex Forward Outrights

Saxo Capital Markets offers currency trades for future dates for most Forex currency pairs through our SaxoTrader trading platform. SaxoTrader gives strong price indications for most Forward Outrights immediately. Forward Outrights are commonly used to hedge currency risks for futures Forex transactions, and to take advantage of interest rate differentials between currencies.

If you are new to trading Forex or just interested in how Forex Trading works, you have come to the right place. Check out our Forex education and try a free download of our SaxoTrader trading platform to help you get started trading Forex.

Why trade Forex?

The currency market is huge; with an estimated 3.2 trillion USD traded every day, the turnover is far more than both the stock and futures markets combined. With this kind of turnover there is always movement in the Forex markets and the chance to make profits, even when other markets are stagnant. Traders are looking increasingly across markets to take advantage of latest economical trends and further diversify their portfolios. Whether it is oil, gold or silver, stock markets or the

currency markets that are moving, a SaxoTrader account offers direct and easy access to all these markets from a single consolidated account.

Our free Trading Platform, a good place to start

A good place to start is by registering and downloading the SaxoTrader trading platform demo. This demo allows you to trade Forex on a fully-functional trading platform, on live Forex prices and from a risk-free simulated account that can even be reset if you want to start again from scratch. Download Demo

Introduction to Forex Options

For an introduction to Forex Options, how they work and some typical trading strategies, go to our Forex Options Education Center

Low Margin Requirements

Option margins are calculated taking into account: Delta margin related to the related exposure in the spot market Vega margin related to changes in volatility of the underlying spot Forex Any open related spot positions

This margin calculation offers lower requirements for options used to hedge spot positions a service previously only offered to professional traders.

Exercise/Expiry

Saxo Capital Markets supports New York Cut options which expire at 10:00 A.M. New York Time. Options that are in-the-money at expiry, are automatically exercised and converted to a spot position without the need for any intervention from you.

Margin Rates and Conditions 1. Target Bid/Ask spreads

Our target bid / ask spreads listed are our best possible target spreads used in normal market conditions. In quiet market conditions, the spread may be even narrower but in periods of volatile markets, the spread may be increased and autoexecution disabled. For certain categories of clients, the spreads may in general be wider by up to 2 pips. The spreads applicable to your account will be displayed in your SaxoTrader. Please consult your Introducing Broker or Saxo Capital Markets to obtain further information about our spread range and its implications to your account.

2. Margin requirements
Forex is traded on margin enabling you to leverage a small margin deposit for a much greater market effect where: First USD 25K margin rates apply to the first USD 25,000 (or equivalent) of your investment collateral Normal margin rates apply to all investment collateral over USD 25,000 (or equivalent)

3. Autoexecuted trades
Major currency trades can be autoexecuted for amounts below the autoexecution limit. Autoexecuted trades are automatically accepted without intervention from the bank. For trade sizes over the autoexecute limit and in volatile market conditions, the trade must first be approved by a dealer which normally takes just a few seconds. * Note that these are typical autoexecute limits that can change over the day, depending on the market conditions and available liquidity.

4. Ticket fees for low-value trades

For Forex trades below the Ticket Fee Threshold listed, a small ticket fee of USD 10 is added to the trade to cover administration costs. This Ticket fee is not applicable to Saxo MiniTrader accounts.

Margin calls
You must maintain the margins listed in your account at all times. If the funds in your account fall below this margin, you will be subject to a margin call to either deposit more funds to cover your positions or close positions normally you will be notified through our trading platform and via email. If your margin situation is not remedied, we may close positions on your behalf.

Forex Trading Hours

See opening hours here

Saxo Capital Markets Business Opening hours

From March 25th, Saxo Capital Markets is open from Sunday 19:00 GMT to Friday 21:00 GMT

Positions held until their Value Date

Open Spot Forex positions held at 17:00 New York local time (currently Friday 21:00 GMT) on the business day before their Value Date will be rolled over to a new Value Date on a Tom/Next basis. As part of the rollover, positions are subject to a swap charge or credit based on the LIBOR/LIBID interest rates of the two traded currencies with an added a markup of +/0.25%, plus an interest component of LIBOR/LIBID +/- 0.75% for any unrealized profit/loss on the position. There will be some delay before swaps are credited/debited to positions on in your account summary due to processing.

SaxoTrader Rates Important information

In the beginning of September, Weekend Margins were reintroduced due to continued instability in the market (i.e. margins doubled from Friday 18:00 CET to Sunday 23:00 CET). As we are constantly monitoring and evaluating the markets, we have decided that Weekend Margins are no longer necessary. Therefore, Weekend Margins were removed on September 28, 2007. Currencies TRY, ISK and ZAR had their margins increased on August 16, 2007. In connection to the removal of the Weekend Margin, normal margins for these currencies were reinstated September 24, 2007 at 16:00 CET (14:00 GMT). Please view the changes below. Margin on the first USD 25,000 (or equivalent investment collateral) / normal margin: TRY margin will change from 6%/12% back to 4%/8% ISK and ZAR margins will change from 4%/8% back to 2%/4%

These Forex crosses and trading rates are available from a SaxoTrader account.

Show crosses containing:

Cross 1) Target Spread (PIPs) 2) First $25K Margin 2) Normal Margin Liquidity 3) Autoexecute* 4) Ticket Fee Threshold

AUDCAD

10

1%

2%

Major

2,000,000

100,000

AUDCHF

10

1%

2%

Major

3,000,000

100,000

AUDCZK1 40

1%

2%

Major

1,000,000

50,000

AUDDKK

35

1%

2%

Major

100,000

AUDEUR

1%

2%

Major

2,000,000

100,000

AUDGBP

1%

2%

Major

100,000

AUDHUF1 40

1%

2%

Major

1,000,000

50,000

AUDJPY

1%

2%

Major

5,000,000

100,000

AUDNZD

13

1%

2%

Major

2,000,000

100,000

AUDPLN1 40

1%

2%

Major

1,000,000

50,000

AUDSEK

40

1%

2%

Major

1,000,000

100,000

AUDSGD

1%

2%

Major

1,000,000

50,000

AUDUSD

1%

2%

Major

5,000,000

100,000

CADCHF

1%

2%

Major

3,000,000

100,000

CADJPY

1%

2%

Major

5,000,000

100,000

CADPLN1 35

1%

2%

Major

1,000,000

100,000

CADUSD

400

1%

2%

Major

1,000,000

100,000

CHFAUD

10

1%

2%

Major

1,000,000

100,000

CHFCZK1 40

1%

2%

Major

50,000

50,000

CHFDKK

17

1%

2%

Major

5,000,000

100,000

CHFHUF1 40

1%

2%

Major

1,000,000

50,000

CHFJPY

1%

2%

Major

5,000,000

100,000

CHFNOK

30

1%

2%

Major

3,000,000

100,000

CHFPLN1 40

1%

2%

Major

1,000,000

50,000

CHFSEK

30

1%

2%

Major

3,000,000

100,000

CHFSGD

1%

2%

Major

1,000,000

100,000

CHFUSD

270

1%

2%

Major

2,000,000

100,000

DKKCZK1 15

1%

2%

Major

3,000,000

500,000

DKKHUF1 8

1%

2%

Major

3,000,000

500,000

DKKJPY

10

1%

2%

Major

10,000,000

1,000,000

DKKPLN1 7

1%

2%

Major

3,000,000

500,000

DKKSGD1 5

1%

2%

Major

3,000,000

500,000

EURAUD

10

1%

2%

Major

2,000,000

100,000

EURCAD

12

1%

2%

Major

3,000,000

100,000

EURCHF

1%

2%

Major

15,000,000

100,000

EURCZK1 30

1%

2%

Major

2,000,000

50,000

EURDKK

1%

2%

Major

25,000,000

100,000

EURGBP

1%

2%

Major

5,000,000

100,000

EURHKD

25

1%

2%

Major

5,000,000

50,000

EURHUF1 30

1%

2%

Major

2,000,000

50,000

EURJPY

1%

2%

Major

10,000,000

100,000

EURNOK

30

1%

2%

Major

3,000,000

100,000

EURNZD

12

1%

2%

Major

2,000,000

100,000

EURPLN1 35

1%

2%

Major

2,000,000

50,000

EURSEK

30

1%

2%

Major

3,000,000

100,000

EURSGD

12

1%

2%

Major

2,000,000

50,000

EURUSD

1%

2%

Major

35,000,000

50,000

GBPAUD

10

1%

2%

Major

2,000,000

100,000

GBPCAD

10

1%

2%

Major

2,000,000

100,000

GBPCHF

1%

2%

Major

5,000,000

100,000

GBPCZK1 100

1%

2%

Major

500,000

50,000

GBPDKK

55

1%

2%

Major

100,000

GBPEUR

1%

2%

Major

100,000

GBPHUF1 60

1%

2%

Major

50,000

GBPJPY

1%

2%

Major

5,000,000

100,000

GBPNOK 55

1%

2%

Major

2,000,000

100,000

GBPNZD

35

1%

2%

Major

250,000

100,000

GBPPLN1 60

1%

2%

Major

50,000

GBPSEK

55

1%

2%

Major

2,000,000

100,000

GBPSGD

15

1%

2%

Major

1,000,000

50,000

GBPUSD

1%

2%

Major

6,000,000

50,000

HKDJPY

45

1%

2%

Major

15,000,000

50,000

JPYDKK

1%

2%

Major

100,000,000

10,000,000

JPYNOK

1%

2%

Major

100,000,000

10,000,000

JPYUSD

1%

2%

Major

50,000,000

1,000,000

NOKDKK

1%

2%

Major

10,000,000

1,000,000

NOKJPY

10

1%

2%

Major

1,000,000

1,000,000

NOKSEK

1%

2%

Major

20,000,000

1,000,000

NOKUSD

100

1%

2%

Major

1,000,000

NZDAUD

12

1%

2%

Major

2,000,000

100,000

NZDCAD

10

1%

2%

Major

2,000,000

100,000

NZDCHF

10

1%

2%

Major

2,000,000

100,000

NZDCZK1 50

1%

2%

Major

1,000,000

50,000

NZDDKK

25

1%

2%

Major

2,000,000

100,000

NZDEUR

1%

2%

Major

2,000,000

100,000

NZDGBP

1%

2%

Major

100,000

NZDHUF1 40

1%

2%

Major

1,000,000

50,000

NZDJPY

1%

2%

Major

5,000,000

100,000

NZDPLN1 40

1%

2%

Major

1,000,000

50,000

NZDSEK

50

1%

2%

Major

2,000,000

100,000

NZDSGD

10

1%

2%

Major

1,000,000

50,000

NZDUSD

1%

2%

Major

5,000,000

100,000

PLNDKK1 30

1%

2%

Major

125,000

PLNJPY1

70

1%

2%

Major

2,000,000

125,000

PLNSEK1

35

1%

2%

Major

2,000,000

125,000

SEKDKK

1%

2%

Major

10,000,000

500,000

SEKJPY

10

1%

2%

Major

10,000,000

500,000

SEKNOK

1%

2%

Major

20,000,000

500,000

SEKPLN1

1%

2%

Major

2,000,000

50,000

SGDHKD

25

1%

2%

Major

2,000,000

100,000

SGDJPY

1%

2%

Major

2,000,000

50,000

USDCAD

1%

2%

Major

5,000,000

100,000

USDCHF

1%

2%

Major

20,000,000

50,000

USDCZK1 30

1%

2%

Major

50,000

USDDKK

25

1%

2%

Major

100,000

USDHKD

1%

2%

Major

5,000,000

50,000

USDHUF1 30

1%

2%

Major

2,000,000

50,000

USDJPY

1%

2%

Major

20,000,000

50,000

USDNOK

30

1%

2%

Major

3,000,000

100,000

USDPLN1 35

1%

2%

Major

2,000,000

50,000

USDRUB4 75

1%

2%

Major

1,000,000

50,000

USDSEK

30

1%

2%

Major

3,000,000

100,000

USDSGD

1%

2%

Major

5,000,000

50,000

AUDZAR1 90

2%

4%

Minor

1,000,000

100,000

CADMXN 65

4%

8%

Minor

250,000

100,000

CHFSKK1 30

2%

4%

Minor

1,000,000

100,000

CHFZAR1 100

2%

4%

Minor

1,000,000

50,000

DKKZAR1 30

2%

4%

Minor

3,000,000

500,000

EUREEK1 55

2%

4%

Minor

100,000

EURISK2

15

2%

4%

Minor

100,000

50,000

EURLTL1 35

2%

4%

Minor

100,000

100,000

EURMXN

4%

8%

Minor

1,000,000

100,000

EURRON3 50

2%

4%

Minor

250,000

50,000

EURSKK1 35

2%

4%

Minor

2,000,000

100,000

EURZAR1 100

2%

4%

Minor

1,000,000

125,000

GBPILS

80

2%

4%

Minor

50,000

GBPMXN 6

4%

8%

Minor

1,000,000

100,000

GBPSKK1 55

2%

4%

Minor

1,000,000

100,000

GBPZAR1 200

2%

4%

Minor

1,000,000

50,000

MXNJPY

4%

8%

Minor

3,000,000

100,000

NZDZAR1 75

2%

4%

Minor

1,000,000

100,000

USDAED1 7

2%

4%

Minor

250,000

50,000

USDBHD1 50

2%

4%

Minor

250,000

50,000

USDEEK1 10

2%

4%

Minor

100,000

USDILS1

40

2%

4%

Minor

50,000

USDISK2

15

2%

4%

Minor

50,000

50,000

USDJOD1 30

2%

4%

Minor

250,000

50,000

USDKWD1 15

2%

4%

Minor

250,000

50,000

USDLTL1

2%

4%

Minor

100,000

100,000

USDMXN

55

4%

8%

Minor

1,000,000

50,000

USDOMR1 15

2%

4%

Minor

50,000

USDQAR1 15

2%

4%

Minor

250,000

50,000

USDSAR1 5

2%

4%

Minor

250,000

50,000

USDSKK1 40

2%

4%

Minor

2,000,000

50,000

USDZAR1 100

2%

4%

Minor

1,000,000

50,000

ZARJPY1

2%

4%

Minor

5,000,000

50,000

AUDTRY1 35

4%

8%

Exotic

1,000,000

100,000

CADTRY1 40

4%

8%

Exotic

1,000,000

100,000

CHFTRY1 30

4%

8%

Exotic

1,000,000

100,000

CYPEUR1 65

4%

8%

Exotic

100,000

CYPUSD1 70

4%

8%

Exotic

50,000

EURLVL1 25

4%

8%

Exotic

100,000

100,000

EURTRY1 30

4%

8%

Exotic

1,000,000

50,000

GBPTRY1 40

4%

8%

Exotic

1,000,000

100,000

MTLEUR1 135

4%

8%

Exotic

50,000

MTLUSD1 160

4%

8%

Exotic

50,000

NZDTRY1 35

4%

8%

Exotic

1,000,000

100,000

TRYDKK1 80

4%

8%

Exotic

1,000,000

50,000

TRYJPY1

20

4%

8%

Exotic

1,000,000

100,000

USDHRK1 80

4%

8%

Exotic

100,000

USDLVL1

4%

8%

Exotic

100,000

100,000

USDTRY1 20

4%

8%

Exotic

1,000,000

50,000

XAGAUD1 8

2%

4%

Metals

30,000

5,000

XAGEUR1 6

2%

4%

Metals

30,000

5,000

XAGHKD1 4500

2%

4%

Metals

30,000

5,000

XAGJPY1 8.00

2%

4%

Metals

30,000

5,000

XAGUSD1 550

2%

4%

Metals

50,000

5,000

XAUAUD

1.00

2%

4%

Metals

1,000

100

XAUEUR

65

2%

4%

Metals

1,000

100

XAUHKD

7.00

2%

4%

Metals

1,000

100

XAUJPY

100

2%

4%

Metals

1,000

100

XAUUSD

60

2%

4%

Metals

2,000

100

Due to limited liquidity, these currency crosses can only be traded from 07.00 GMT to 15.00 GMT from Monday to Friday. Outside this time Market Orders are available to trade as soon as possible but we accept no responsibilities for price slippage between the close and open price on the next day's trading.
2 3 4

EURISK and USDISK - Trading hours are from 09.15 GMT to 16.00 GMT from Monday to Friday. EURRON - Trading hours are from 7.15 GMT to 14.00 GMT from Monday to Friday. USDRUB - Trading hours are from 06.00 GMT to 13.00 GMT from Monday to Friday.

The commission and margin rates referred to above may vary from time to time especially for very active or inactive customers. Saxo Capital Markets reserves the right to amend the commission rates, brokerage fees, margin rates and interest rates referred to according to the terms of the trading agreement entered into between Saxo Capital Markets and the Client.

These Forex crosses and trading rates are available from a Saxo MiniTrader account. Show crosses containing:
Cross 1) Target Spread (PIPs) 2) Margin Liquidity 3) Autoexecute*

AUDUSD

1%

Major

5,000,000

EURCHF

1%

Major

15,000,000

EURGBP

1%

Major

5,000,000

EURJPY

1%

Major

10,000,000

EURNOK

30

1%

Major

3,000,000

EURSEK

30

1%

Major

3,000,000

EURUSD

1%

Major

35,000,000

GBPCHF

1%

Major

5,000,000

GBPJPY

1%

Major

5,000,000

GBPUSD

1%

Major

6,000,000

NZDUSD

1%

Major

5,000,000

USDCAD

1%

Major

5,000,000

USDCHF

1%

Major

20,000,000

USDHKD

1%

Major

5,000,000

USDJPY

1%

Major

20,000,000

USDSGD

1%

Major

5,000,000

XAGEUR

2%

Metals

30,000

XAGJPY

8.00

2%

Metals

30,000

XAGUSD

550

2%

Metals

50,000

XAUUSD

60

2%

Metals

2,000

Forex Option Rates

Forex Option Rates

Forex Options 1) Target Spread (PIPs) Autoexecute 2) Ticket Fee Threshold

AUDJPY

12

RFQ

100,000

AUDNZD

10

RFQ

100,000

AUDUSD

5 mill

100,000

CADJPY

12

RFQ

100,000

CHFJPY

10

RFQ

100,000

EURAUD

12

RFQ

100,000

EURCAD

14

RFQ

100,000

EURCHF

10 mill

100,000

EURCZK

65

RFQ

100,000

EURGBP

10 mill

100,000

EURHUF

90

RFQ

100,000

EURJPY

10 mill

100,000

EURNOK

90

RFQ

100,000

EURNZD

25

RFQ

100,000

EURPLN

90

RFQ

100,000

EURSEK

90

RFQ

100,000

EURUSD

20 mill

50,000

GBPCAD

30

RFQ

100,000

GBPCHF

14

RFQ

100,000

GBPJPY

12

RFQ

100,000

GBPUSD

5 mill

50,000

NZDUSD

RFQ

100,000

NZDJPY

14

RFQ

100,000

USDCAD

5 mill

100,000

USDCHF

15 mill

50,000

USDHUF

90

RFQ

50,000

USDJPY

10 mill

50,000

USDNOK

90

RFQ

100000

USDPLN

90

RFQ

100,000

USDSEK

90

RFQ

100,000

USDTRY

65

RFQ

50000

USDZAR

350

RFQ

250,000

XAUUSD*

1.25

RFQ

100

XAGUSD*

0.1000

RFQ

5,000

The commission and margin rates referred to above may vary from time to time especially for very active or inactive customers. Saxo Capital Markets reserves the right to amend the commission rates, brokerage fees, margin rates and interest rates referred to according to the terms of the trading agreement entered into between Saxo Capital Markets and the Client.

1) Target Bid/Ask spreads

These are the target bid / ask price spreads used in normal market conditions. In quiet market conditions, the spread may be even narrower but in periods of volatile markets, the spread may be increased and autoexecution disabled.

2) Ticket fees for low-value trades

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

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 option expiry date.

Forex Options Margin Requirements

Margin requirements for Forex Option positions which take into account changes in: volatility spot price of the underlying asset. open positions (that effectively reduce the risk associated with your Options positions).

Margin Calculations
Margin requirements for Forex options consist of a Delta Margin which is related to the exposure 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 options with lowered margin requirements. This service, previously only offered to Professional Traders, is now available to retail traders.

Exercise procedure
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 exercise, the exercised position will be netted out on the following day.

* Spot Gold and Silver Trade Times

Spot Gold and Spot Silver options can be traded live from 24:00 and 21:00 GMT. Outside this time, Market Orders are available to trade as soon as possible but we accept no responsibilities for price slippage between the close and open prices on the next days trading.

Description
The Delta measure describes how the value of an option changes as a result of small changes in the underlying asset, assuming that all the other factors influencing option pricing are constant. The delta of an option can also be viewed as the required hedge for the option against changes in the underlying spot, i.e. the position in the spot which ensures that the Profit/Loss on the option is offset by the Profit/Loss on the spot position. For each options position, the table below indicates the direction, i.e. whether to buy or sell, of the hedge position in the spot.

Technical Description
The first derivative of the option price with respect to the underlying asset (i.e. the slope of the option's price-curve at the spot rate). Position Long Call Long Put Short Call Short Put

Hedge (in spot)

Sell

Buy

Buy

Sell

Example Call
If an investor buys a 40 Delta EUR/USD Call for one million, he/she can hedge this position by selling 400,000 in the underlying asset - i.e. the spot. Alternatively, if the investor had bought a 30 Delta EUR/USD Call he/she would have to sell 300,000 in the spot market to become delta neutral.

Example Put
If the investor buys a 55 Delta EUR/USD Put for 1.000.000, he/she would have to buy 550.000 in the spot market. Alternatively, if the investor sells the Put, the corresponding hedge would be a short position in the spot market, as indicated in the table above.

Forex Option Rates

Forex Options 1) Target Spread (PIPs) Autoexecute 2) Ticket Fee Threshold

AUDJPY

12

RFQ

100,000

AUDNZD

10

RFQ

100,000

AUDUSD

5 mill

100,000

CADJPY

12

RFQ

100,000

CHFJPY

10

RFQ

100,000

EURAUD

12

RFQ

100,000

EURCAD

14

RFQ

100,000

EURCHF

10 mill

100,000

EURCZK

65

RFQ

100,000

EURGBP

10 mill

100,000

EURHUF

90

RFQ

100,000

EURJPY

10 mill

100,000

EURNOK

90

RFQ

100,000

EURNZD

25

RFQ

100,000

EURPLN

90

RFQ

100,000

EURSEK

90

RFQ

100,000

EURUSD

20 mill

50,000

GBPCAD

30

RFQ

100,000

GBPCHF

14

RFQ

100,000

GBPJPY

12

RFQ

100,000

GBPUSD

5 mill

50,000

NZDUSD

RFQ

100,000

NZDJPY

14

RFQ

100,000

USDCAD

5 mill

100,000

USDCHF

15 mill

50,000

USDHUF

90

RFQ

50,000

USDJPY

10 mill

50,000

USDNOK

90

RFQ

100000

USDPLN

90

RFQ

100,000

USDSEK

90

RFQ

100,000

USDTRY

65

RFQ

50000

USDZAR

350

RFQ

250,000

XAUUSD*

1.25

RFQ

100

XAGUSD*

0.1000

RFQ

5,000

The commission and margin rates referred to above may vary from time to time especially for very active or inactive customers. Saxo Capital Markets reserves the right to amend the commission rates, brokerage fees, margin rates and interest rates referred to according to the terms of the trading agreement entered into between Saxo Capital Markets and the Client.

1) Target Bid/Ask spreads

These are the target bid / ask price spreads used in normal market conditions. In quiet market conditions, the spread may be even narrower but in periods of volatile markets, the spread may be increased and autoexecution disabled.

2) Ticket fees for low-value trades

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

Forex Options Margin Requirements

Margin requirements for Forex Option positions which take into account changes in: volatility spot price of the underlying asset. open positions (that effectively reduce the risk associated with your Options positions).

Margin Calculations

Margin requirements for Forex options consist of a Delta Margin which is related to the exposure 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 options with lowered margin requirements. This service, previously only offered to Professional Traders, is now available to retail traders.

Exercise procedure
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 exercise, the exercised position will be netted out on the following day.

* Spot Gold and Silver Trade Times

Spot Gold and Spot Silver options can be traded live from 24:00 and 21:00 GMT. Outside this time, Market Orders are available to trade as soon as possible but we accept no responsibilities for price slippage between the close and open prices on the next days trading.

Forex Options Strategy Maker

Welcome to the Forex Options Strategy Maker. This interactive section will help you to find the Forex Options trading strategies that best suit your trading needs and perspective. Based on your response to a series of questions, the Strategy Maker provides a suggested strategy to assist you in capitalising on an expected trend in the market or to assist you in making the most of your current positions in the spot. Find Your Strategy

Risk warning Saxo Bank A/S shall not be responsible for any loss arising from any investment based on any recommendation, forecast or other information herein contained. The contents of this publication should not be construed as an express or implied promise, guarantee or implication by Saxo Bank that clients will profit from the strategies herein or that losses in connection therewith can or will be limited. Trades in accordance with the recommendations in an analysis, especially leveraged investments such as foreign exchange trading and investment in derivatives, can be very speculative and may result in losses as well as profits, in particular if the conditions mentioned in the analysis do not occur as anticipated. Please read our full Analysis Disclosure & Disclaimer at

Basic Options Trading Strategies

Strategy Recommendation
If you are short in the spot and want to protect your position, while at the same time taking a profit/reducing cost, you can use a Short Collar.

SHORT COLLAR
A Short Collar can be used when you have a short position in the spot and you believe that the market will move in favor of your position in the long term, but you are concerned that there will be a large correction in the short term. You want to protect your position against the correction while at the same time limit the cost of the hedge.

Action
Buy a Call option (with strike A) to protect the downside while selling a Put (with strike B) to reduce the cost of the hedge. As a result, the short position in the spot is transformed into a synthetic Put Spread until the options expire.

example
You are Short EUR/USD. You expect a possible large correction over the next two weeks. The spot is 1.18. You buy a EUR/USD Call for two weeks with a strike of 1.1800. The option's premium is 88 pips. You sell a EUR/USD Put with a strike of 1.1650. The option's premium is 22 pips. You therefore pay a net premium of 66 pips.

Upside
If the spot rises, the bought Call ensures that the short position in the spot can be bought back at the strike price.

Downside
If the spot decreases, the profit is less than it would have been without the collar. By selling the Put, you forfeit all profit below 1.1650. In addition, you also lose the premium paid for the hedge.

Basic Options Trading Strategies Strategy Recommendation

If you want to protect your short position in the spot, you can buy a Protective Call.

PROTECTIVE CALL

A Protective Call is primarily used when traders expect a significant, short-term correction. By using the Call to protect your short position, you can stay in the market but avoid significant losses in the event that the market moves against your position.

action
Buy a Call option on the underlying asset with a strike price A. This hedge will turn the Short spot position into a synthetic Long Put until the option expires (see graph).

example
You are Short EUR/USD. You expect a possibly large correction over the next two weeks. The spot is 1.18. You buy a EUR/USD Call for two weeks with a strike of 1.18. You pay a premium of 88 pips.

Upside

If the spot increases, you will exercise the Call, which allows you to square off the position, i.e. to buy the short position back, at the strike rather than at the higher prevailing spot at the time of expiry.

Downside
The risk is that the option expires as worthless and the premium is lost.

Basic Options Trading Strategies Strategy Recommendation

If you are short in the spot and want to protect your position, while at the same time taking a profit/reducing cost, you can use a Short Collar.

SHORT COLLAR
A Short Collar can be used when you have a short position in the spot and you believe that the market will move in favor of your position in the long term, but you are concerned that there will be a large correction in the short term. You want to protect your position against the correction while at the same time limit the cost of the hedge.

Action
Buy a Call option (with strike A) to protect the downside while selling a Put (with strike B) to reduce the cost of the hedge. As a result, the short position in the spot is transformed into a synthetic Put Spread until the options expire.

example
You are Short EUR/USD. You expect a possible large correction over the next two weeks. The spot is 1.18. You buy a EUR/USD Call for two weeks with a strike of 1.1800. The option's

premium is 88 pips. You sell a EUR/USD Put with a strike of 1.1650. The option's premium is 22 pips. You therefore pay a net premium of 66 pips.

Upside
If the spot rises, the bought Call ensures that the short position in the spot can be bought back at the strike price.

Downside
If the spot decreases, the profit is less than it would have been without the collar. By selling the Put, you forfeit all profit below 1.1650. In addition, you also lose the premium paid for the hedge.

Basic Options Trading Strategies Strategy Recommendation

If you want to take a profit/reduce cost in relation to a short position in the spot, you can sell a Covered Put.

COVERED PUT
Covered Puts are generally used in dormant markets, where you have are generally positive about your position's performance in the long-term, but wish to capitalise on the market's short-term performance.

action
Sell a Put option with strike A (see graph). Select the strike price at a level you do not believe will be breached prior to the option's expiry. This action turns your short position into a synthetic Short Call during the time the sold Put option is present (i.e. during the time you expect the market to be only mildly bearish).

example

You are Short EUR/USD. You expect a mildly bearish but calm market over the next week. The spot is 1.18. You sell EUR/USD Put for one week with a strike of 1.17. The option's premium is 22 pips.

Upside
If the option expires worthless, you profit from the premium of the sold Put.

Downside
The risk is that the spot moves below 1.17, in which case you forfeit the additional profit (from the short position in the spot) beyond this point.

Basic Options Trading Strategies Strategy Recommendation

If you want to protect your long position, you can use a Protective Put.

PROTECTIVE PUT

A Protective Put is used when you are positive about your position in the long-term, but you are concerned in the short-term about a downward correction in the spot.

action
Buy a Put option on the underlying asset with a strike price A. This transforms the long spot position into a synthetic Long Call while the Protective Put is in effect(see graph).

example

You are Long EUR/USD. You expect a possible large correction over the next two weeks. The spot is 1.18. You buy a EUR/USD Put for two weeks with a strike of 1.18. The option's premium is 80 pips.

Upside
The benefit of this strategy is that, in the event the market tumbles, you can sell your long position in the asset at the strike price rather than at the lower prevailing market price.

Downside
The risk is that the option expires as worthless and the premium is lost.

Basic Options Trading Strategies Strategy Recommendation

If you want to protect your long position and take a profit/reduce cost, you can use a Long Collar.

CALL SPREAD
Long Collars are generally used when a significant, short-term correction is expected in the spot.

Action
Buy a Put option (with strike A) to protect the long position while selling a Call (with strike B) to reduce the cost of the protection. This hedge will transform the Long spot into a synthetic Call Spread until the options expire.

Example

You are Long EUR/USD. You expect a possible large correction over the next two weeks. The spot is 1.18. You buy a two-week EUR/USD Put with a strike of 1.1800 for a premium of 78 pips. You sell a two-week EUR/USD Call with a strike of 1.1950 for a premium of 27 pips. You therefore pay a net premium of 51 pips.

Upside
If the spot falls, the bought Put ensures that the long position in the spot can be sold at the strike price.

Downside
If the spot exceeds 1.1950 at expiry, any profit on the original Long spot position is forfeited beyond this point. In addition, if the options are not exercised, the net premium paid is also lost.

Basic Options Trading Strategies Strategy Recommendation

If you want to protect your long position and take a profit/reduce cost, you can use a Long Collar.

CALL SPREAD
Long Collars are generally used when a significant, short-term correction is expected in the spot.

Action
Buy a Put option (with strike A) to protect the long position while selling a Call (with strike B) to reduce the cost of the protection. This hedge will transform the Long spot into a synthetic Call Spread until the options expire.

Example
You are Long EUR/USD. You expect a possible large correction over the next two weeks. The spot is 1.18. You buy a two-week EUR/USD Put with a strike of 1.1800 for a premium of 78 pips. You sell a two-week EUR/USD Call with a strike of 1.1950 for a premium of 27 pips. You therefore pay a net premium of 51 pips.

Upside
If the spot falls, the bought Put ensures that the long position in the spot can be sold at the strike price.

Downside
If the spot exceeds 1.1950 at expiry, any profit on the original Long spot position is forfeited beyond this point. In addition, if the options are not exercised, the net premium paid is also lost.

Basic Options Trading Strategies Strategy Recommendation

If you want to take a profit from your long position or reduce the costs associated with it, you can sell a Covered Call.

COVERED CALL
A Covered Call is primarily used in dormant markets. This strategy allows you to maintain your position in the spot, while profiting from sold Call if your expectations regarding the market are realised.

action

Sell a Call option with strike A (see graph). The strike price should be selected at a point you do not believe will be breached prior to the expiry date of the option.

example
You are Long EUR/USD. You expect a mildly bullish but calm EUR/USD market over the next week. The spot is 1.18. You sell a EUR/USD Call for one week with a strike of 1.19. The option's premium is 20 pips.

Upside
This strategy's profit potential is the premium you received when you sold the option.

Downside
If the spot increases beyond 1.19, the holder of the option will exercise the Call and you will thus have to sell at the strike of the Covered Call. This implies that any profit potential on the Long spot position beyond 1.19 is forfeited.

Basic Options Trading Strategies Strategy Recommendation

If you are bullish on the currency and volatility, you can use a Long Call or a Call Spread as your options strategy.

LONG CALL
Long Calls can be used to take advantage of a developing or existing, short or long-term increasing trend in the spot.

Action

Buy Call with strike A (see graph). Any strike price is bullish, however, the higher you set the strike , the more out-of-the-money the option is, thus the higher the leverage.

example
You believe EUR/USD will rise towards the 1.22 level in about a month's time. The spot is currently 1.1720. You buy EUR/USD Call for one month with a strike of 1.1750. The price is 108 pips.

Upside
The profit region for this option is any spot price above 1.1858(the option's break-even point) and is potentially unlimited.

Downside
The risk is limited to the cost of the premium (108 pips), which will be lost if the options are worthless at the time of expiry.

Mildly Bullish View

On the other hand, if you are only mildlly bullish in your currency view, you could use a Call spread.

Strategy Recommendation
For example, if you are bullish on the volatility of EUR/USD, you believe that the volatility is priced too low for this currency pair. If you are bearish on the currency and volatility, you can use a Short Call as your options strategy.

SHORT CALL

A Short Call allows you to capitalise on bearish markets. You can use this strategy when you expect minor changes in the spot, and you believe that these changes will result in a decrease in the spot. You can also use this strategy if you believe that the option is priced too high, i.e. the market expects the price to move more than you think it will.

action
Sell Call with strike A (See Short Call graph). Any strike price you select should be bearish, reflecting your view of how the currency will perform over the period of the option.

Example
You expect EUR/USD to remain fairly stable at the current market levels for the next month. The spot is 1.1720. You sell a EUR/USD Call with a strike of 1.18 for a premium of 86 pips.

Upside
This strategy's profit potential is the premium received, 38 pips.

Downside
The risk region for this strategy is any price above 1.1886 at the time the option expires.

What is an Option?
An option gives you the right, but not the obligation to either buy (Call Option) or sell (Put Option) an asset at a certain price (known as the strike) on a certain date. For this right to buy or sell the underlying asset, you pay a premium upfront to the seller of the option. Whether you choose to use, or exercise, this right, is dependent upon the market conditions at the time the option expires.

Example
If you have a contract stating that you can buy EUR/USD on June 1st at the price of 1.2000, you have an option - an option to buy EUR/USD. If the value of EUR/USD is higher than USD 1.2000 on June 1st, you will profit from buying it because you can then turn around and sell it for more than 1.2000. On the other hand, if the value is less than 1.2000, you wouldn't want to buy the currency at the price in the contract, since you could instead buy EUR/USD at the market price. Since an option gives you the right but not the obligation to either buy or sell an asset, you are entitled not to buy EUR/USD if the price doesn't suit you. Next we will take a closer look at how an investor trades Forex Options, including the factors influencing the decision to exercise the option.

A Trading Scenario
You expect that the British pound will strengthen significantly against the yen and rise well above the current level in the coming days. The current market price is 203.51. To capitalise on this expected change in the market, you decide to buy a GBP/JPY Call Option. You set a strike price of 203.61 for one month from now, i.e. an expiry date of 6 February. This means that on the 6 February you have the right to buy 1,000,000 GBP/JPY at the price of 203.61. Using the Option panel within SaxoTrader, your trade would look like this:

SaxoTrader Option panel

This option costs you a premium of 154 pips or 1,540,000 JPY. Let's say that, as you have anticipated, the option expires in the money (in this case, above the 203.61 strike price), due to a significant increase in the GBP/JPY spot rate. Let's assume that the spot rate on exercise date, 6 February 2006 is 206.75. To realise your profits, you exercise your right to buy at the 203.61 strike price (Saxo Bank will automatically exercise or expire your option for you). Afterwards, you can then sell GBP/JPY at the 206.75 market price to close the position and take the profit. The profit scenario is then: Closing spot price - Strike price - premium = profit 206.75 - 203.61 - 1.54 = JPY 1.60 profit

If the spot rate was quoted below the strike price (203.61), the option would have been out of the money. Since you could not profit from exercising the option, you would simply let the option expire and purchase GBP/JPY at the spot price (if you wished to enter a position). In that case, you would have lost your premium, but your risk in this transaction was limited to the premium and nothing more. Your profit/loss scenario is illustrated below. As you can see, by purchasing the call option, you can make unlimited profit but the maximum loss is the premium paid. Because you paid the 154-pip premium up front, your break-even point is not simply the strike price of 203.61, but the strike price plus the premium paid, or 205.15.

GBP/JPY Spot Rate

The Profit/Loss Potential

The profit potential for Put and Call options is illustrated below. As shown below, when buying an option, the profit potential is unlimited whereas the potential loss is limited to the amount paid for the premium. Selling an option gives you a premium up front, but the premium is also the maximum profit you can take. So, if you sell an option, the profit/loss scenario is the opposite of when buying one. (Limited gain, unlimited loss potential).

Profit/Loss

Now that we have looked at the ways that you can profit from a Forex Options trade, let's take a closer look at the factors influencing the value of an option.

The Value of an Option

The value of an option has two elements, the intrinsic value and the time value.

Intrinsic Value
Market convention is to refer to the price of the underlying asset minus the strike of the option as the option's intrinsic value (for a Call option, for a Put it is just the opposite). Theoretically, one could argue that the forward rate of the underlying asset should be used instead of its spot, but market convention is to use the spot.

Time Value
Simply put, an option's time value is the amount by which the value of the option exceeds the intrinsic value. The volatility of the underlying asset has a significant bearing on the time value. Time value increases as volatility increases because of the Profit/Loss scenario for an option. As previously mentioned, the potential upside for an option holder is unlimited, while the downside is limited to the premium paid. Hence, an option on an asset which is more likely to take on extreme values is much more valuable than on a less volatile asset. Interest rates differentials in the two currencies involved in a currency option trade must also be taken into consideration when pricing an option, and these are also a function of time. This graph depicts how a call option is priced according to how close the asset price is to the strike price for the option.

Let's say that you hold a Call option with a 1.2000 strike price, and that the market price of EUR/USD has risen to 1.2155. Your option is worth 225 pips thirty days before the option's expiration date. The intrinsic value is the difference between the strike price for the underlying asset in the option contract (1.2000) and the market price (1.2155). If you hold a call option, which gives you the right to buy EUR/USD at 1.2000 and the market price is 1.2155 the intrinsic value of the option is 155 pips. So the price of the option is the intrinsic value plus the time value (in this case 70 pips). Now that we have examined basic ways of trading options, their value and the profit/loss potential of trading these products, let's look at some of the advantages of trading Forex Options.

Why trade options?

1. You can limit your risks (maximum potential loss is the premium if you are the buyer) and you will still have unlimited profit potential. 2. Options require less money up front than if, for example, you take a regular spot position. This is because you don't buy the asset itself but only a contract that gives you the right to either buy or sell the asset at a given price. Therefore, if you are the buyer, you will only have to pay the premium upfront. On the other hand, if you are the seller of an option, you receive the premium upfront, but then you have the possibility of an unlimited loss. 3. An option offers you some important hedging opportunities. 4. Options are traded OTC (over-the-counter), which essentially means that you decide the strike price, the exercise date and the currency pairs involved in the option contract.

5. Trading Forex Options at Saxo Bank allows you to trade on live, streaming prices for nine major currency pairs. Read more about trading Forex Options at Saxo Bank.

Forex Options at Saxo Bank

Saxo Bank was the first FX Option trading provider to offer trading of FX options directly on live streaming prices, without dealer intervention, to private investors. We are also one of the first banks to offer exotic options to private traders.

Options Trading on Live Price Quotes

Saxo Bank offers Over the Counter (OTC) plain vanilla European style Forex options in Options for 9 major Forex 33 major currency crosses, traded crosses are traded directly on live price quotes without dealer online through our SaxoTrader intervention. For other crosses, SaxoTrader offers good price platform. We also offer two types indications. of exotic options barrier and touch which are available across For options with expiries outside 1 week to 6 months, exotic and nine currency crosses: EURUSD, multiple leg options, prices are quoted by a dealer on request. EURJPY, EURGBP, EURCHF, USDJPY, USDCHF, USDCAD, GBPUSD, and AUDUSD.

Exercise/Expiry

Forex Options Saxo Bank supports New York Cut options which expire at 10:00 A.M. Education New York Time. For options that are in-the-money at expiry, Saxo Bank Forex Options automatically exercises the option and converts it to a spot position trading rates and without the need for any intervention from you. conditions Find the right options strategy with Strategy Maker

Forex Options at Saxo Bank

Forex Options for 33 currency pairs 9 FX options traded directly on live

streaming price quotes (no dealer intervention) Gold and Silver options Low margin requirements with professional netting calculation for hedging spot positions Automatic exercise of options on expiry Use other investments (including stocks and bonds) as collateral for options trading

Low Margin Requirements

Option margins are calculated taking into account:

Delta margin related to the related exposure in the spot market Vega margin related to changes in volatility of the underlying spot Forex Any open related spot positions

This margin calculation offers lower requirements for options used to hedge spot positions a service previously only offered to professional traders.

Swap Rates

Forex positions held until their Value Date

Spot Forex positions held at the end of the business day before their Value Date will be rolled over to a new Value Date on a Tom/Next basis. As part of the rollover, positions are subject to a swap charge or credit based on the LIBOR/LIBID interest rates of the two traded currencies with an added a markup of +/0.25%.

Interest on Unrealised Profit/Loss

In addition to the swap charge or credit, an interest component of LIBOR/LIBID +/- 0.75% will be credited or debited at rollover for any unrealised profit or loss on the position.

Swap Rates
Select the original value date and one of the traded currencies for an open position. The new value date and swap points applied at rollover for both Long and Short positions are displayed. These swap rates are for indication purposes only and may differ slightly from those applied to your trading account.

Rollover Date

Currency

Value Dates Forex Cross From To AUDUSD 22-Oct-2007 23-Oct-2007 EURUSD 22-Oct-2007 23-Oct-2007 GBPUSD 22-Oct-2007 23-Oct-2007 NZDUSD 23-Oct-2007 24-Oct-2007 USDCAD 19-Oct-2007 22-Oct-2007 USDCHF 22-Oct-2007 23-Oct-2007 USDCZK 22-Oct-2007 23-Oct-2007 USDDKK 22-Oct-2007 23-Oct-2007 USDJPY 22-Oct-2007 23-Oct-2007 USDNOK 22-Oct-2007 23-Oct-2007 USDSEK 22-Oct-2007 23-Oct-2007 USDSGD 22-Oct-2007 23-Oct-2007 USDPLN 22-Oct-2007 23-Oct-2007 USDZAR 22-Oct-2007 23-Oct-2007 USDHKD 22-Oct-2007 23-Oct-2007 USDKRW 22-Oct-2007 23-Oct-2007 USDMYR 22-Oct-2007 23-Oct-2007

Swap Points Long Positions Short Positions -0.000025 -0.000056 0.000054 0.000009 -0.00002 -0.000087 -0.000057 -0.000087 0.000054 -0.000067 -0.000069 -0.000114 -0.00051 -0.00119 -0.000011 -0.000191 -0.012 -0.0159 0.000171 -0.000074 -0.000059 -0.000282 -0.00007 -0.00012 0.00004 -0.00005 0.00114 0.000862 0.000152 -0.000184 -0.107 -0.137 -0.000067 -0.000178

USDMXN USDPHP USDSAR USDTHB USDTWD USDEGP USDIDR USDJOD USDKWD USDMAD USDOMR USDQAR USDAED USDBHD USDBRL USDHUF USDINR USDISK USDVEB USDCNY CYPUSD JPYUSD USDEUR USDGBP HKDUSD CADUSD USDILS USDLTL USDEEK USDHRK USDLVL MTLUSD USDSKK USDDZD USDIRR USDIQD USDLBP USDLYD USDSYP USDTND USDYER XAUUSD

22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 24-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 19-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007

23-Oct-2007 23-Oct-2007 23-Oct-2007 24-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 25-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 22-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007

0.000874 0.00157 0.00003 -0.00184 -0.00381 -0.000648 -1 0.000013 0.0000138 -0.000925 -0.000005 0.0001 0.000075 0.0000095 -0.0001 0.0175 0.0021 0.0146 -0.2513 -0.000878 0.000126 0.0000012016 -0.000004401 0.0000207524 0.0000030628 0.000070753 -0.000008 0.00007 0.000086 0.000211 0.00003 0.000125 0.00014 -0.007899 -1.09 -0.14 -0.17 -0.0001453 -0.0059 -0.000145 -0.0232 0.1091

0.000413 -0.00105 -0.000104 -0.00416 -0.00484 -0.000824 -1.33 -0.000013 -0.0000028 -0.001176 -0.0000198 -0.000066 -0.000072 -0.0000051 -0.00018 0.0107 0.0007 0.0122 -0.3194 -0.001117 -0.000088 0.0000009069 -0.0000264054 0.0000047705 -0.00000253 -0.0000570178 -0.000169 -0.000034 -0.000411 -0.000022 0.000003 -0.000013 -0.00093 -0.010036 -1.39 -0.19 -0.23 -0.0001848 -0.0077 -0.000185 -0.0296 0.0955

XAGUSD USDRUB USDTRY CHFUSD CZKUSD DKKUSD HRKUSD HUFUSD ILSUSD ISKUSD MXNUSD MYRUSD NOKUSD PLNUSD SEKUSD SGDUSD THBUSD TRYUSD USDNZD ZARUSD SKKUSD USDAUD RUBUSD USDRON RONUSD AEDUSD
Forex Cross

22-Oct-2007 19-Oct-2007 19-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 24-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 19-Oct-2007 23-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007 19-Oct-2007 22-Oct-2007 22-Oct-2007 22-Oct-2007

23-Oct-2007 22-Oct-2007 22-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 25-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 24-Oct-2007 22-Oct-2007 24-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007 22-Oct-2007 23-Oct-2007 23-Oct-2007 23-Oct-2007

0.002246 0.00265 0.001333 0.0000836137 0.0000032581 0.0000070306 0.0000008385 -0.0000003485 0.0000104985 -0.0000033956 -0.0000035515 0.0000157465 0.0000025653 0.0000075065 0.0000068534 0.0000559488 0.0000035633 -0.0007362614 0.0001551187 -0.0000185889 0.0000017035 0.000070076 0.0000028517 0.000117 0.0000047025 0.0000053425

0.001619 -0.00176 0.001075 0.0000506063 0.0000013963 0.0000004049 -0.0000080418 -0.00000057 0.000000497 -0.0000040634 -0.0000075155 0.0000059268 -0.0000059276 -0.000006005 0.0000014338 0.0000326357 0.000001576 -0.0009127694 0.0001016254 -0.0000245829 -0.0000002564 0.0000312828 -0.000004293 -0.000026 -0.0000211598 -0.0000055649

The Forex currency cross to which the swap rates apply in held on the selected Value Date. Select a currency from your Forex currency cross from the Currency drop-down list above.

Value Dates
These fields show the selected Original Value Date for a position and the new Value Date after rollover.

Value Date From

If the Forex currency cross was held one business day before this Value Date, the swap charges listed were applied. Select a currency the Original Value Date for the rollover position from the drop-down list above.

Value Date To
The new value date after rollover (the next business day).

Swap Points
These Swap Points were added to open positions at rollover.

Swap Points for Long Positions

For long positions in the Forex currency cross, these Swap Points x number of currency units held were added to the position at rollover.

Swap Points for Short Positions

For short positions in the Forex currency cross, these Swap Points x number of currency units held were added to the position at rollover.

Interest Rates

The rates displayed are the mid money market rates for the given interest rate periods. All rates are for information purposes only. Currency 1 day 1 week 2 weeks 1 month 2 months 3 months 6 months 9 months 1 year

EUR

3.94

4.03

4.04

4.08

4.26

4.56

4.42

4.44

4.48

USD

4.6

4.8

4.75

4.75

4.86

4.85

4.7

4.72

JPY

0.5

0.48

0.52

0.6

0.74

0.88

0.9

0.97

0.99

GBP

5.75

5.78

5.85

5.95

6.03

6.15

6.16

6.11

5.99

THB

3.25

3.16

3.16

3.16

3.25

3.05

3.08

3.1

3.31

AUD

6.2

6.32

6.3748

6.5

6.68

6.73

7.01

7.09

7.25

CAD

4.4

4.52

4.63

4.66

4.73

4.82

4.87

4.82

4.84

CHF

1.84

2.04

2.09

2.28

2.5

2.7

2.71

2.78

2.86

CZK

3.16

3.18

3.21

3.27

3.37

3.52

3.52

3.6

3.7

DKK

4.1

4.15

4.1591

4.18

4.28

4.47

4.51

4.48

4.5

HKD

4.3

4.97

5.2

5.05

4.91

4.96

4.69

4.57

4.52

IDR

0.1

13

INR

6.1154

6.25

7.25

8.25

8.5

9.5

ISK

12.8

13.3

13.35

13.45

13.55

13.6

13.75

13.75

13.7

MYR

3.45

3.5

3.4909

3.47

3.53

3.55

3.58

3.6

3.65

NOK

5.14

5.14

5.2

5.3

5.34

5.45

5.57

5.65

5.7

NZD

8.1

8.17

8.1943

8.25

8.43

8.53

8.67

8.8

8.78

PHP

4.5

6.05

6.2

6.41

6.41

6.4

5.84

5.68

5.66

SEK

3.75

3.77

3.8339

3.98

4.05

4.2

4.41

4.49

4.45

SGD

1.5

2.33

2.3087

2.26

2.35

2.4

2.46

2.56

2.5

ZAR

10.15

10

10.1826

10.6

10.6

10.8

10.95

10.84

11.2

PLN

4.79

4.78

4.79

4.83

4.87

4.97

5.13

5.23

5.33

HUF

7.38

7.21

6.95

6.96

7.02

7.06

6.9

6.82

6.86

CYP

3.5

3.85

3.8957

4.05

4.1

4.25

4.25

4.25

EEK

4.0304

4.1

4.25

4.5

4.6

4.6

4.55

HRK

4.5

5.2

5.5

5.9

5.7

5.7

LTL

4.6

4.65

4.8

5.15

5.35

5.35

5.4

5.4

Failed to load interest rateClmDataFeedSvr30.FTMFXInterestRate.1GetInterestRate

If you are used to trading stocks, this page discusses a few of the similarities and differences when trading Forex.

Connections between the Forex and Stock Markets

The stock markets and Forex markets are not independent and most of the fundamental statistics that influence the rise and fall of currency markets affect the stock markets in the same way: If the stock market is experiencing a rally, the countries currency generally strengthens against other currencies If the US unemployment rises, this generally has a negative affect on both the stock markets and the currency If a country's trade deficit widens, both the stock market and the currency may be negatively affected Of course Forex and stock markets also behave independently as well Forex crosses are a relative difference between the two economies they represent while stock markets are local to the country where they are located.

Trading differences
If you are moving into Forex trading from trading stocks, there are a few benefits that Forex trading has to offer that you should be aware of: 24-hour trading Forex is traded around the clock so you can enter and exit positions whenever you like. Unlike stock markets which open and close at scheduled times and the price in between can be uncertain, Forex markets are seamless and allow you to trade to your own schedule. Live execution at displayed prices The liquidity (trading volume) in major currency crosses is so large that we can guarantee that your trade will be executed at the price displayed up to large trade volumes. If the price is displayed in green, that is the price you can rely on. You dont need to wait until your trade has been routed to an exchange order book to tell you at what price your order was filled at as with stock trades. Direct Short Selling In fact, there is no such thing as short selling in Forex trading to take advantage of a downward price trend. Selling EURUSD simply means you are buying Dollars using Euros (because you believe the Dollar is going to strengthen against the Euro). There are no up-tick or complicated rules you need to be aware of, like in the equity markets. Commission-free trading Sounds too good to be true? The way we make our money at Saxo Capital Markets is from the small difference between the ask price (the buy price) and the bid price (sell price) for the Forex cross. For small trades we have to cover our costs but for trades above our minimum threshold, we

Basic Options Trading Strategies

The following links describe some basic Forex Options trading strategies. The strategy you choose depends primarily on your currency view, i.e. the direction you believe a particular currency will move both in the short and long term (usually expressed as a bullish or bearish view) and your volatility view, i.e. how large you feel the changes in price will be for a particular currency. For more trade strategies, try our interactive Strategy Maker that provides suggested strategies based upon your currency and volatility outlook. Long Call Short Call Long Straddle Long Strangle Short Strangle Call Spread

Long Call
Scenario
You want to capitalise on an increasing trend in the spot market. The trend could be either short or long term.

Action
Buy Call with strike A (see Long Call graph). Any strike price is bullish, however, the higher you set the strike , the more out-of-the-money the option is, thus the higher the leverage.

For Reference

example
You believe EUR/USD will rise towards the 1.22 level in about a month's time. The spot is currently 1.1720. You buy EUR/USD Call for one month with a strike of 1.1750. The price is 108 pips.

Upside
The profit region for this option is any spot price above 1.1858(the option's break-even point) and is potentially unlimited.

Downside
The risk is limited to the cost of the premium (108 pips), which will be lost if the options are worthless at the time of expiry.

Short Call
scenario
You expect minor changes in the spot, and these will more than likely result in a decrease in the spot. You can also use this strategy if you believe that the option is priced too high, i.e. the market expects the price to move more than you think it will.

action
Sell Call with strike A (See Short Call graph). Any strike price you select should be bearish, reflecting your view of how the currency will perform over the period of the option.

For Reference

Example
You expect EUR/USD to remain fairly stable at the current market levels for the next month. The spot is 1.1720. You sell a EUR/USD Call with a strike of 1.18 for a premium of 86 pips.

Upside
This strategy's profit potential is the premium received, 86 pips.

Downside
The risk region for this strategy is any price above 1.1886 at the time the option expires.

Long Straddle
scenario
You anticipate a large move in the spot, perhaps in connection with a certain event, but you are not sure of the direction of the move.

action
Buy a Put and a Call with the same strike price. The strike price should be roughly at-themoney (equal or nearly equal to the market price).

For Reference

Example
You believe that EUR/USD will move significantly in either direction in the next month. The spot is 1.1730 and the forward price is app. 1.1750. You buy a EUR/USD Call and a EUR/USD Put for one month with a strike of 1.1750 for a premium of 128 pips and 127 pips, respectively. The total premium is 255 pips.

Upside
The profit region is any price above 1.2005 or below 1.1495.

Downside
The risk is limited to the cost of the premiums (255 pips), which will be lost if the options are worthless at the time of expiry.

Long Strangle
Scenario
You anticipate a large move in the spot, in either direction, if the spot price breaches certain levels.

Action
Buy a Put with strike price A and a Call with strike price B (see Long Strangle graph). Choose the strike prices according to which levels you believe will trigger large moves in the spot.

For Reference

Example
You believe EUR/USD will have a large swing in price if certain levels are breached. The spot is 1.1730. You buy a one-month EUR/USD Call with a strike of 1.19 for a premium of 67 pips and a EUR/USD Put with a strike of 1.16 for a premium of 67 pips.

Upside
This strategy yields a profit if the spot is below 1.1466 or above 1.2034 at the time of expiry.

Downside
The risk is limited to the cost of the premiums (134 pips), which will be lost if the options are worthless at the time of expiry.

Short Strangle
Selling a Strangle is a popular strategy for use in dormant markets. You would use this strategy when you expect a currency to trade within a certain range and not breach a specific up and down level.

Action
Sell a Put with strike A and a Call with strike B. Choose the strike prices according to what you believe will be the upper and lower limits of the range trading.

Example
You expect EUR/USD to trade between 1.16 and 1.19 during the next week. The spot is currently 1.1730. You sell a one-week EUR/USD Call with a strike of 1.1900 for a premium of 60 pips. You sell a one-week EUR/USD Put with a strike of 1.600 for the same premium. Your profit region is above 1.1480 and below 1.2020.

Profit Potential
Your profit is limited to the premium of the two sold options.

Risk
The risk is unlimited if the option expires in-the-money.

Call Spread
Scenario
You expect a moderate increase in the spot.

Action
Buy a Call with strike price A and sell a Call with strike price B (see Call Spread graph). Strike price A would be selected roughly at-the-money. Strike price B should be placed at the the value you expect the spot to have at the time the option matures.

For Reference

Example
EUR/USD spot is 1.1730. You expect it to increase to app. 1.20 within a month's time. You buy a EUR/USD Call with a strike of 1.18 for a premium of 105 pips. You sell a EUR/USD Call with a strike of 1.20 for a premium of 39 pips.

Upside
You profit potential is any price above 1.1866, but with a ceiling of 1.20.

Downside
The loss of the net premium paid, or 66 pips (the net value of the premium paid minus the premium received), if the option is worthless at the time of expiry.