How does options exercise and expiry work?

FX Options Expiry

FX Options expire automatically, meaning there’s no need to call in to manage the exercise or expiry. If an option is in-the-money at expiry, it will be settled automatically according to the predefined exercise method (outlined in the next section). Otherwise, the option will expire worthless at 10:00 AM Eastern Standard Time (New York cut) on the expiry date.

Listed Options

Stock Options
Stock and contract options are typically physically settled, while index options are cash settled.

• Holders of American-style options may exercise at any time before expiry—except on the final trading day.

• Upon exercise, the option position is closed at zero value, and a position in the underlying asset is instantly created at the strike price.

• Clients are encouraged to consider closing the option in the market and acquiring the underlying asset separately for greater flexibility.

• Currency options on CME cannot be exercised if they are out-of-the-money; such requests will be automatically cancelled.

Contract Options

Saxo Markets offers two types of contract options, as defined by the exchange:

• American-style options:

• Can be exercised online at any time before expiry, excluding the last trading day.

• If in-the-money, they convert into a specific futures contract, which remains visible in the Account Summary until settlement.

• European-style options:

• Can only be exercised automatically at expiry.

• If in-the-money, they are cash settled at expiry.

Note: Physically settled listed options that are more than 5% out-of-the-money cannot be exercised.

Details on settlement style and expiry can be found directly in the trade ticket and trading conditions.

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