FX OPTIONS

Explore a more tailored approach to currency risk management with FX Options via our partnership with ALT21, an FCA-regulated firm.

Options hedging solutions can be precisely customised to your specific needs, including balancing downside protection, upside participation, and path dependency.

Header image

FXPerts

With years of trusted partnership, Oku Markets is proud to be an Introducer Appointed Representative of Alt21, providing FX Options trading solutions to our clients. 

Our teams work closely together every day to deliver bespoke currency hedging strategies, combining deep market expertise with innovative technology, and access to high-quality liquidity and competitive trading terms.

Image.aspx

What are Currency Options?

There are hundreds of variations and types of products available, but to keep it simple, let's start with the basics...
  • Slider image

  • Feature icon
    Vanilla Option

    The simplest type of FX option. The buyer pays an upfront premium to secure the right — without obligation — to exchange currency at a chosen rate in the future. This flexibility allows the buyer to walk away if market conditions are more favourable.

  • Feature icon
    Multi-Leg (Structured) Options

    A combination of multiple options into a tailored solution. These strategies can enhance flexibility, reduce upfront costs, or optimise outcomes by aligning with specific market views or risk preferences.

Trade Audit Service

If you have booked FX Option contracts with another provider, we can unpick and reprice them historically to show what you’re really paying. While we can’t provide advice, we’ll explain how the trades work and outline alternative solutions you may want to explore.
Feature image

Why Consider Currency Options?

There are many reasons why a business might use currency options as part of its risk management strategy
  • Feature icon
    Protect
    Preserve your profits and manage downside risk
  • Feature icon
    Balance
    Create a balanced portfolio to reduce realised volatility
  • Feature icon
    Choice
    A blend of risk mitigation and market participation

Use Cases for FX Options

Here are four common use cases for integrating options into your currency risk management strategy

  • Protect and Participate

    Currency Options help protect against adverse market moves while allowing participation if rates move in your favour.

  • Remain Competitive

    Options can enable businesses to adjust pricing with market shifts, staying competitive while managing downside risk.

  • Over- or Under-Hedging

    Options can add flexibility to fine-tune hedging strategies, avoiding both overexposure and under-protection risks.

  • Cap Margin Call Risk

    Certain strategies can limit mark-to-market losses and reduce exposure to unexpected and unwanted margin calls.

Risks and Potential Disadvantages

Currency Options carry risks and may not always be suitable for you. An Options strategy could leave you worse off than an equivalent Forward Contract.
The below is not an exhaustive list.

  • Non-Refundable Premium

    Vanilla Options require an up-front, non-refundable premium to be paid when purchasing the contract. Forward contracts, by comparison, are premium-free.

  • Less Favourable Rate

    Options strategies generally offer a less favourable hedging rate than the equivalent forward contract. This is typically in exchange for upside potential.

  • Mark-to-Market Risk

    Some Options strategies may require an up-front cash deposit, and will be exposed to Mark-to-Market revaluations and potential margin calls.

  • Path Dependency

    Some Options strategies include features that can benefit or disadvantage the buyer depending on the path of the spot rate over time.

Ready To Take The Next Step?

Arrange a consultation with one of our Options experts

Risk Disclaimer:

Trading in leveraged financial derivatives such as Options carries a high level of risk and may not be suitable for everyone. Using such financial products may run the risk of substantial capital losses which may exceed your initial deposit. You should carefully consider your financial situation and needs and seek independent advice from a duly authorised financial adviser. For more information read Alt21's complex products risk warning.

Thank You!

We'll be in touch shortly with your quote

Popup image

Book your FX Audit

Contact us to arrange your FREE currency health check

Error. Your form has not been submittedEmoji
This is what the server says:
There must be an @ at the beginning.
I will retry
Reply

Thanks for subscribing!

Look out in your inbox for our confirmation email – you'll need to click the link to confirm your subscription.

Contact Us

Our team is ready to help

Error. Your form has not been submittedEmoji
This is what the server says:
There must be an @ at the beginning.
I will retry
Reply

Request a Quote

Our trading team is ready to help

Error. Your form has not been submittedEmoji
This is what the server says:
There must be an @ at the beginning.
I will retry
Reply

Let's Talk

Share your info and let's start the conversation!

Error. Your form has not been submittedEmoji
This is what the server says:
There must be an @ at the beginning.
I will retry
Reply

Contact Us Today

Fill in your details and we'll get in touch with you to arrange your currency review

Error. Your form has not been submittedEmoji
This is what the server says:
There must be an @ at the beginning.
I will retry
Reply

Request Your Guide

Fill in your details and we'll send the guide

Error. Your form has not been submittedEmoji
This is what the server says:
There must be an @ at the beginning.
I will retry
Reply

Contact Us Today

Fill in your details and we'll get in touch with you to arrange your currency review

Error. Your form has not been submittedEmoji
This is what the server says:
There must be an @ at the beginning.
I will retry
Reply

Start Your Switch

Share your info and let's start the conversation

Error. Your form has not been submittedEmoji
This is what the server says:
There must be an @ at the beginning.
I will retry
Reply

Subscribe to Our FX Market Newsletter

You'll receive a confirmation email to click to confirm your subscription. Please keep an eye on your junk folder just in case!

Error. Your form has not been submittedEmoji
This is what the server says:
There must be an @ at the beginning.
I will retry
Reply

Contact Us Today

Fill in your details, and we'll get in touch with you to arrange your currency review.

Error. Your form has not been submittedEmoji
This is what the server says:
There must be an @ at the beginning.
I will retry
Reply

Get in Touch, AFCW Fan!

Fill in your details, and we'll get in touch with you to arrange your currency review.

Or reach out to our friendly team directly: info@okumarkets.com | +44 (0) 203 838 0250

Error. Your form has not been submittedEmoji
This is what the server says:
There must be an @ at the beginning.
I will retry
Reply

Let's Talk

Share your info and let's start the conversation

Error. Your form has not been submittedEmoji
This is what the server says:
There must be an @ at the beginning.
I will retry
Reply

Join the wait list...

We'll be in touch when we're ready to launch

Error. Your form has not been submittedEmoji
This is what the server says:
There must be an @ at the beginning.
I will retry
Reply

Request Your Report

Tell us where to send the report and we'll be in touch shortly!

We only send to company email addresses!

Error. Your form has not been submittedEmoji
This is what the server says:
There must be an @ at the beginning.
I will retry
Reply

Let's Talk

One of our consultants will get in touch ASAP

Error. Your form has not been submittedEmoji
This is what the server says:
There must be an @ at the beginning.
I will retry
Reply

Contact Oku Markets

We'll be in touch with you ASAP...

Error. Your form has not been submittedEmoji
This is what the server says:
There must be an @ at the beginning.
I will retry
Reply
Cookie 🍪
We use cookies