Trading Conditions

Trading Conditions

FX Vanilla Options Trading Conditions

Award winning pricing

Fab Investing provides you with an access to available liquidity and live streaming prices. Fab Investing prices are shown on your trading platforms as dynamic Bid/Ask spreads. The options’ bid/ask spreads are of variable nature and depend on the contracts’ maturity and an underlying currency pair. 

Choice of Exercise method

Forex Vanilla Options that are 'in the money' are automatically exercised at 10:00 am EST (New York cut) on the day of expiry. By default they are converted to a spot position. Up until one hour before exercise you may choose between receiving the spot position ('spot') or having Fab Investing automatically exit the spot position at mid-price of the spread at the time of exercise ('cash'). There is no limit to the number of times you may change the exercise method.

The 'cash' exercise method is available on both long and short positions and will always happen at mid-spread - even in volatile market conditions.

If 'spot' exercise method is chosen, the spot position is subject to the usual profit/loss if the spot price moves from the exercise price. If you already have an offsetting position at the time of exercise, the exercised position will be netted out on the following day. 

Auto execution

The majority of orders on FX Vanilla Options are handled automatically. That is, all orders below an auto execution limit, which varies by instrument, delta and maturity, are accepted without manual intervention by the dealing desk.

The auto execution limits are displayed in the trading platforms under Forex Options Trading Conditions.

Note that auto execution limits may be changed without prior notice under volatile or illiquid markets. 

Trade on quotes FREE, with No Slippage*

'Green' option prices streamed up to the auto execution limits will be executed automatically, whereas the ‘yellow’ prices that are above the auto execution limit trades require you to request for a quote (RFQ), which means that the dealer will quote prices to you manually. So that the options’ execution price available is the actual price of the trade known to you upfront – “what you see is what you get”, with no slippage involved.

Fab Investing does not charge you for requesting a quote from a dealer.

* In normal market conditions.

Expiration Style

Fab Investing offers European style FX Vanilla Options, that is, option will be exercised or expire only at the expiry date and cut at 10:00 Eastern Standard Time (New York cut). Positions cannot be exercised prior to maturity.

Since Fab Investing always quotes both bid/offer prices, you are always able to close your position before maturity at the current market price. The long and short positions will then be netted off prior to expiry.

Minimum Trade Size

The minimum trade size for FX Vanilla Options on currency pairs is 10,000 units of base currency; for precious metals are 10 oz (Gold) and 100 oz (Silver).

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