FX option
| Contexts of option use | Apply |
FX option can ensure an FX rate
An FX option provides the customer with a right to make a currency trade with agreed terms in the future. An FX option does not obligate the option holder to make a currency trade at a fixed rate. Therefore, the buyer of an FX option benefits from favourable FX changes but is hedged against unfavourable changes. For this protection, the buyer pays a premium.
FX options are suitable for hedging all FX rate risks. FX options are also a good alternative when the customer does not want to commit to making a currency trade with an FX forward.
How does your company benefit from FX option?
- An option will ensure the rate used in a future FX trade in advance.
- An option will provide a hedge against unfavourable FX rate fluctuations and enable you to benefit from favourable changes.
Interested in FX option?
- Call Nordea Corporate Service
- Request for more information on FX options
- Look up the nearest Nordea branch
- Not yet Nordea’s customer? Contact us
