FX Options

Diversify online investment with FX Options trading

Forex Options trading is a more advanced type of currency trading available with a eBridge Trader online trading account. FX Options can be used to facilitate a number of trading strategies on a medium to long-term investment timeline, as well as offering excellent opportunities for hedging spot positions. Forex Options are available for currency crosses and Gold and Silver against the US dollar.

Advantages of trading FX Options with eBridge Trader:

• eBridge Trader offers Forex Options for more than 35 currency pairs
• The FX Options Trade Board brings an innovative and intuitive trading tool to investors
• Option trading on live streaming price quotes (no dealer intervention)
• Option expiries from short dated to one year
• Gold and Silver Options
• Automatic exercise of Options on expiry.

eBridge Trader offers Over the Counter (OTC) plain vanilla European style Forex Options in over 35 major currency crosses, traded online through eBridge Traders online trading platforms.

The majority of vanilla Options can be executed directly on live price quotes without dealer intervention. For other Options – including exotic currencies and multiple leg Options, the platform offers good price indications with trades quoted by a dealer on request.

eBridge Trader supports New York cut Forex Options which expire at 10:00 New York time. For Options that are ‘in the money’ at expiry, eBridge Trader automatically exercises the Option and converts it to a spot position without the need for any intervention.

What are FX Options?

A Forex Option gives an investor the right, but not the obligation, to either buy (Call Option) or sell (Put Option) a certain currency pair at a specified price (known as the strike) on a specified date (the expiry date). For this right to buy or sell the underlying asset, a premium is paid upfront to the seller of the Option. Whether one chooses to use, or exercise, this right is dependent upon the market conditions at the time the Option expires. Trading Forex Options makes it possible to profit when a currency pair moves higher or lower.

eBridge Traders Forex Options are traded OTC (Over the Counter) allowing the investor to choose the expiry date, strike price and amount (size of the trade). This differs from more restrictive exchange-traded Options with set expiry dates and amounts. FX Options can be traded whenever the currency markets are open from New Zealand Opening on Monday until New York Closing on Friday with the same benefits of eBridge Traders liquidity as with its online FX Spot trading platform.

Trade FX Options online

An eBridge Trader online trading account is an essential tool for the professional FX trader. eBridge Traders trading platforms support online trading of FX Spot, Options and Forward Outrights. For the FX Options trader, eBridge Trader is one of the only online providers that facilitates Options trading on live prices.

What makes the eBridge Trader FX Options Board so unique?

• All in one view gives you the full market picture
• Standardised dates and strike increments ensures deep liquidity and competitive, reliable pricing
• Time to Market no more typing spot levels and maturity dates, it’s all streamed into the board