EUR/USD 1.23480 %0.09
GBP/USD 1.39889 -%0.04
USD/JPY 107.366 %0.05
EUR/CHF 1.15454 -%0.04
EUR/GBP 0.88258 %0.06
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Currency Options

Hedging FX Risk

Hedging is an investment position that is used to offset any potential losses or gains arising by another existing or anticipated exposure.
Customers can use options to hedge their foreign currency risk.

In general a company is exposed to Foreign Exchange risk if:
  • It receives income (exports) in a foreign currency.
  • It has expenses (imports, salaries, royalties) in a foreign currency.
  • Expects to pay or receive foreign currency in the future.
  • It has deposits in a foreign currency.
  • It has borrowed in a foreign currency.
  • It has assets (investments, land etc) or liabilities in a foreign currency.
  • It bided into a public/private tender that involves the provision of goods or services that are denominated in a foreign currency upon success.
An option is an instrument that specifies a contract between two parties for a future transaction at a reference price (the strike). The buyer of the option
gains the right, but not the obligation, to engage in that transaction, while the seller incurs the corresponding obligation to fulfill the agreement

TFI Markets offers the chance to benefit and/or hedge your currency risk through a variety of options and option structures.

4 Majors — Option Strategies   Long Put option — Right to sell   Short Call option — Obligation to sell
  Long Call option — Right to buy   Short Put option — Obligation to buy

You can also combine these strategies if a more complicated option structure suits your hedging or investment needs.

1st Strategy
Long Put option — Right to sell
2nd Strategy
Long call option — Right to buy
3rd Strategy
Lowering the cost of the option (Collar structure)
4th Strategy
Dual Currency Option

TFI Markets Currency Options
  • Multi year history and in-depth experience in the currency markets
  • Trading lines with the worlds biggest international banks and improved access to interbank liquidity
  • Customized solutions to suit any corporates special needs
  • OTC European-style option structures on 30+ currency pairs
  • Fully flexible choice of maturities up to 1 year
  • Choice of exercise method-Spot or Cash
  • No margin deposit needed for buying options
  • Low margin requirements on selling options
  • Access to pricing and information 24/5
Risk Warning: Trading in financial instruments may result in losses as well as profits. Trading in leveraged instruments can result in losses greater than the initial invested capital. Forex and CFDs are leveraged products and involve a high level of risk. Clients could lose more than their invested capital. These products are not suitable for everyone and clients are advised to seek independent advice, if necessary, in order to ensure that they understand the risks involved. Read Full Risk Warning 
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