FX Options Spreads & Conditions
1) Target Bid/Ask spreadsThe target bid / ask price spreads used in normal market conditions. In quiet market conditions, the spread may be even narrower but in periods of volatile markets, the spread may be increased and autoexecution disabled. The margins for Forex options are also subject to a volatility factor that may increase the margin requirements and this factor will be more prominent the longer the option expiry date. Exercise procedureOptions that are 'in the money' are automatically exercised at 10.00 A.M. New York time (New York cut) on the day of expiry where they are converted to a spot position. This 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 exercise, the exercised position will be netted out on the following day. The commission and margin rates referred to above may vary from time to time especially for very active or inactive customers. RCG reserves the right to amend the commission rates, brokerage fees, margin rates and interest rates referred to according to the terms of the trading agreement entered into between RCG and the Client. |
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