A vanilla option combines % protection provided by a forward foreign exchange contract with the flexibility of benefitting for improvements in the FX market. This works like an insurance contract. In exchange for such a right (without the obligation), the holder usually pays a cost which is known as the Premium for the FX Option/5(6). FX Options are very rare in the UK, yet a mainstay of the electronic trading sector in America. With the regulators and exchange lobby looming, on-exchange options may be the way to go, however one particular British firm has just bowed out altogether.
Good product except the product isn't the best. I've tried a few different brands and this isn't the worst but it's not the best.
Personally I would recommend another brand.
Advanced options execution With prices displayed in premium and volatility and one-click execution and affirmation, BARX provides more control and opportunity for FX options execution.
Foreign exchange market Options finance Derivatives finance.