​Find details on Saxo Capital Markets Contract Options product range, commissions, trading conditions, margin and other operational services and fees.

 

Contract Options are available on the following multiple assets:

 

​Metals ​Gold, Silver, Copper
​Agriculture ​Cocoa, Coffe, Corn, Soybean, Wheat, Sugar, Cattle, Hogs
​Energy ​Crude Oil, Natural Gas, Gasoline
Forex​ ​EURUSD, GBPUSD, Other Majors
​Interest Rates ​STIRs, Gilt, Bund, Bobl, Schatz
​Equity ​DAX, EUROSTOXX, FTSE, CAC, SMI, AEX, S&P500, NASDAQ, Dow Jones, ASX, HSI
 

 

Trading Conditions

Short trades on Contract Options

By default, you will not be enabled to trade Contract Options short. Short selling of Contract Options is allowed for individually assessed clients who have obtained an advanced margin profile.

 

Please contact your account manager for more information.

Orders Processing​​

Support for Stop & Stop-Limit Orders

Stop and Stop Limit orders are subject to support by the exchange on which the contract is traded. The order types available are noted in the pop-up details for each contract.

 

Stop orders are by definition “Stop if Traded” orders meaning a stop order can only be triggered if it trades for a minimum of one lot in the market.

 

As the price of the Contract Option moves with the underlying, you can be in a situation where you reach the level of your stop, but the stop is not triggered as no one is trading on the strike.

 

Partial Fills

Partial fills may occur on Limit orders and the remaining amount stays in the market as a limit order and may be filled within the order duration. Market orders can be filled at numerous levels; the price paid will be the volume weighted average price of all the fills.

Exercise and Settlement

Saxo Capital Markets offers two types of Contract Options as defined by the exchange.

 

American style Options can be exercised online at any time before the expiry, while European style Options can only be auto-exercised at expiry.

 

When in-the-money, an American style Contract Options position can be exercised into a specific Futures contract position, which is visible on the Account Summary until expiration.

 

Once the Contract Option expires, the position stays visible on the Account Summary until the settlement day (instrument-specific).

 

A European style Option, when in-the-money, is only exercised at expiry and is cash settled.

Expiry and Auto Exercise

When trading Contract Options at Saxo Capital Markets, all Options positions are subject to an auto exercise procedure at expiry:

  • All long positions on in-the-money Options are assumed to be exercised
  • All short positions on in-the-money Options are assumed to be assigned
  • All positions on out-of-the-money Options are abandoned

A Call Option is in-the-money when the strike price is below the market price of the underlying asset.

 

A Put Option is in-the-money when the strike price is above the market price of the underlying asset.

 

Abandonment of in-the-money positions is not supported. Thus, clients should close their Option positions prior to expiry.

Full premium vs. Futures Style premium

When acquiring a long position in a full premium Contract Option, the premium amount is deducted from the client’s cash balance. Value from an open long Option position will not be available for margin trading other than indicated in the margin reduction schemes.

Saxo Capital Markets will treat future style premium Options as deferred premium.

 

As such, other than market conventions, unrealized profit/loss is not processed in the clients cash balance on a daily basis. Instead, the original premium amount will remain on the transactions not booked until final settlement of the Option or when the position is closed.

In this way, all other values in the account summary can be treated equal to full premium Options.

Deactivation of the underlying asset​

If the Exchange deactivates the underlying asset, Saxo Capital Markets will notify its clients and remove the related positions from the clients trading accounts.

 

Commissions, fees & subscriptions

Monthly volume-based commissions

Online Contract Options are traded on these monthly volume-based commissions;

 

Contract Currency​ Trade Volume: Contracts / Month​​
1 - 250​ 251 - 1,000​ ​1,000 - 5,000
AUD​ 10.00​ ​5.00 ​2.50
EUR​ ​6.00 ​3.00 ​1.50
GBP​ ​5.00 ​2.50 ​1.25
SGD​ ​15.00 ​7.50 ​3.75
USD​ ​6.00 ​3.00 ​1.50
CHF​ ​8.00 ​4.00 ​2.00
JPY​ ​1,000.00 ​800.00 ​750.00
SEK​ ​75.00 ​40.00 ​20.00
CAD​ ​6.00 ​3.00 ​1.50
HKD​ ​45.00 ​30.00 ​20.00
 
If you trade more than 5,000 contracts per month please contact us for pricing.
 
If no agreement exists to the contrary, you will be charged the highest price category in the table. Contact Saxo Capital Markets to apply for another price category if applicable based on previous trading volumes.
 
Moves to different price categories take place at the discretion of Saxo Capital Markets and always take effect from the beginning of the following month without any adjustment in commissions already paid.

No Minimum Ticket Fees

When trading Contract Options at Saxo Capital Markets, there are no minimum ticket fees. Each trade is subject to a flat-rate fee based on the applicable volume bracket.

No Overnight Carry Cost

When trading Contract Options at Saxo Capital Markets, there are no carrying costs involved, that is positions held overnight will not attract either rolling or interest charges.

No Custody Fees

When trading Contract Options at Saxo Capital Markets, there are no custody fees involved.

Live data prices

Complimentary to existing live data subscriptions on Futures Exchanges, Saxo Capital Markets offers streaming Contract Options prices on the same exchanges free of charge.

 

This also means that you are provided with direct market access to trade Options on various underlying assets on live streaming prices without dealer intervention.

 

Margin Trading

Margin and Stop Out

When trading Contract Options with Saxo Capital Markets, one might be able to cover potential losses involved on holding a position in the underlying instrument. That is the case when selling Contract Options short.

 

In case of a margin breach and stop-out is triggered, all Options positions will be closed. If a stop-out is triggered by trading other margin products (such as FX, Futures) long Contract Options positions will also be included in the stop-out.

 

Margin Trading carries a high level of risk to your capital with the possibility of losing more than your initial investment and may not be suitable for all investors.

 

Ensure you fully understand the risks involved and seek independent advice if necessary.

Trading Short - Margin

A short Option position exposes its holder to the risk of being assigned to deliver the underlying asset, when another market participant who holds a long position exercises his Option’s right.

Losses on a short Option position can be substantial when the market moves against the position.

 

Saxo Capital Markets charges premium margin to ensure sufficient account value to be available to close the short position and additional margin to cover overnight shifts in the underlying value.

 

The margin charges are monitored in real-time for changes in market values and a stop-out can be triggered when the total margin charge for all margined positions exceeds the client’s margin call profile.

 

The generic formula for the short option margin charge is:

 

Short Option Margin = Premium Margin + Additional Margin

Margin Trading carries a high level of risk to your capital with the possibility of losing more than your initial investment and may not be suitable for all investors.

 

Ensure you fully understand the risks involved and seek independent advice if necessary.

 

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