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FX Options

Currency options (1st generation options)

Product characteristics

A currency option provides the buyer with the right of buying or selling one currency for another within a predetermined deadline at a predetermined exchange rate. The buyer of the potion therefore has the right, yet not the obligation (unlike the seller), of implementing the agreed deal. For this right, the buyer pays the seller an option premium.

Barrier options (2nd generation options)

Product characteristics

In barrier options, an additional limit (barrier) is agreed apart from the implementation price. In a barrier call option, the barrier usually lies above the strike; in a barrier put option, it lies as a rule below the strike. A barrier option is divided up to knock-in and knock–out options.

DIGITAL OPTIONS (binary options)

Product characteristics

Digital options enable to receive the fixed amount agreed upon beforehand in case that on the implementation day, the spot rate lies above the implementation price - strike). The size of the amount here is completely independent of the spot rate.

More details can be found in the Dealing Manual available from our contact persons.