Totality’s Forex Vanilla Option offering enables clients to buy and sell European-style options. FX options enable clients to both express a directional trading view and access an alternative solution in relation to risk control.

The holder of an option (long) pays a premium for the right, but not the obligation, to exercise the option at a certain strike price. The writer of an option (short) receives the premium and assumes the possible liability of paying the difference between the strike price and market price at maturity.

The pricing model applied for FX Vanilla options is based on the Black-Scholes model, with prices calculated in pip terms of the second currency. Pricing is available for options with maturities from one day to 12 months.

Available for trading in 44 currency pairs, including silver and gold.

Calls (option to buy a currency at a specified strike price) and puts (option to sell a currency at a specified strike price).

The maximum streaming amount is 25,000,000 units of base currency, with a minimum size of 10,000 units. Notional amounts over the maximum streaming amount are available on a Request for Quote (RFQ) basis.

Please note that maximum streaming amounts may be changed without prior notice.

Tradable tenors from one day to 12 months.

The price is calculated in pip terms of the second currency. The maximum loss when buying an option is the premium paid. The writer of an option receives the premium, but also assumes potentially much greater downside risk.

European-style, this means the option can only be exercised on the expiry date.

Expiry is automatic, so clients are not required to manage the exercise or expiry. If the option is in the money, it will automatically settle in the pre-defined exercise method, or the option will automatically expire at 10am Eastern Standard Time on the expiry date.

When entering a trade, clients can select the exercise method that will apply should the option end up in the money. Options can be converted into a spot position on expiry, or can be cash settled. The cash-settled exercise method is available on both long and short positions and will be executed at the mid-price of the best bid/offer spread. The exercise method can be modified up to one hour prior to expiry.

The margin requirement for the trade is calculated per currency pair to align with FX Spot tiered margins, and per maturity date.

Trading is only available on live quotes.

Trades cannot be executed below the minimum trade sizes:

• XAUUSD: 10 Oz
• XAGUSD: 100 Oz
• NOKSEK: 50,000 NOK
• All other currency pairs: 10,000 units of the base currency.

Should clients seek a Request for Quote (RFQ) on amounts above the maximum streaming amount, any resulting trade will be executed manually by the FX trading desk. Maximum streaming amounts are subject to change without prior notice.

Small trade sizes— any trade below the commission threshold, which for most currency pairs is 50,000 units of base currency—incur a minimum ticket fee of 10 USD.

Markets and exchanges around the world are closed over certain holiday periods.