Bid/Ask Spreads and Auto-execution

Falcon Trader uses a variable bid/ask spread and autoexecution limit pricing model for currency Options. This flexibility allows the provision of current, two-way, competitive market consistent pricing. Since Falcon Trader always quotes both the bid and ask price, the current spread is always visible to the client when requesting an Option price. As Commodity Broking Services continues to increase its profile and participation in the direct interdealer market, these benefits will be passed on to all of our clients.

Exercise Procedure

Forex Options that are 'in the money' are automatically exercised at 10:00 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 the time of exercise, the exercised position will be netted out on the following day.

Ticket Fees for Low-Value Trades

For trades below the Ticket Fee Threshold, a small ticket fee of USD 10 is added to the trade to cover administration costs.

Forex Options	Ticket Fee Threshold
AUDJPY	AUD 100,000
AUDNZD	AUD 100,000
AUDUSD	AUD 100,000
CADJPY	CAD 100,000
CHFJPY	CHF 100,000
CHFTRY	CHF 100,000
EURAUD	EUR 100,000
EURCAD	EUR 100,000
EURCHF	EUR 100,000
EURCZK	EUR 50,000
EURGBP	EUR 100,000
EURHUF	EUR 50,000
EURJPY	EUR 100,000
EURNOK	EUR 100,000
EURNZD	EUR 100,000
EURPLN	EUR 50,000
EURSEK	EUR 100,000
EURTRY	EUR 50,000
EURUSD	EUR 50,000
GBPCAD	GBP 100,000
GBPCHF	GBP 100,000
GBPJPY	GBP 100,000
GBPUSD	GBP 50,000
NOKSEK	NOK 1,000,000
NZDJPY	NZD 100,000
NZDUSD	NZD 100,000
USDCAD	USD 100,000
USDCHF	USD 50,000
USDHUF	USD 50,000
USDJPY	USD 50,000
USDNOK	USD 100,000
USDPLN	USD 50,000
USDSEK	USD 100,000
USDTRY	USD 50,000
USDZAR	USD 50,000
USDILS	USD 50,000
XAGUSD	XAG 5,000
XAUUSD	XAU 100