FX Options

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Have the security of a forward contract (selecting your desired strike price), with added flexibility to benefit if exchange rates move in your favour.

Ideal for a volatile market:

  • If exchange rates move in your favour, the exchange rate you achieve is better than a forward rate (your strike price).
  • If exchange rates move against you, you’re protected and can exchange at your strike price.

What is an Option?

A foreign exchange option is an agreement that gives the buyer the right, but not the obligation, to enter into a foreign currency transaction at a pre-determined exchange rate (“strike price”) on a pre-determined date in the future (“expiry date”).

The buyer pays a non-refundable fee ("premium") for the option. If the buyer chooses to exercise the option, they must settle the underlying foreign currency transaction.  No further action is required if the buyer chooses to let the option lapse. 

Features

-        Bought options only (you cannot sell options to OzForex)

-        Fixed expiry date

-        Face value AUD50,000 equivalent to AUD1m equivalent

-        Currencies available:  AUD, CAD, EUR, GBP, JPY, NZD, USD

-        Exclusive to Australian based clients

Please note FX Options are available over the phone only.

Register now for instant online access to our dealing platform or contact us to speak with one of our accredited dealers and discuss your FX Option needs.

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Rate: 0.7937
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Rate: 1.2599
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NOTE: These rates are for informational purposes only

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