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Forex Options

Trading Term

At Interactive Brokers (IBKR), Forex Options refer to financial contracts that give traders the right (but not the obligation) to buy or sell a specific amount of a foreign currency at a predetermined price (known as the strike price) on or before a specific expiration date. These options are traded on currency pairs in the foreign exchange (forex) market.

Forex options combine the concepts of both foreign exchange and options trading, and they can be used to hedge, speculate, or manage currency risk. IBKR provides access to a wide range of currency options contracts with competitive pricing.

IBKR offers two types of currency options:

FX index options through the Philadelphia Stock Exchange (PHLX) for the following currency pairs:

Australian Dollar/USD (XDA)

British Pound/USD (XDB)

Canadian Dollar/USD (XDC)

Euro/USD (XDE)

Japanese Yen/USD (XDN)

Swiss Franc/USD (XDS)

New Zealand Dollar/USD (XDZ)

CNH/USD options trading on the Hong Kong Futures Exchange (HKFE) under the symbol CNH

To trade these options, clients must have the appropriate “Options” trading permissions for either United States or Hong Kong markets, which can be set up through the Client Portal under Trading Permissions.

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