Benefits

For purchased options

• You can benefit from a positive shift, so you can earn extra returns by taking risks on the foreign exchange rate.
• You can reduce or completely eliminate the exchange rate risk arising from your currency exposure in a personalised and structured way.
• The loss from a purchased option cannot be greater than the amount of the premium paid for the option.
• The option can be closed with a reverse trade before expiry.
• No deposit required.

For written options

• The option premium will be credited on the second day after the conclusion of the trade.
• The client can earn extra income through the option premium by choosing a strike price at which the option will not be exercised or at which the client would have traded as originally intended.
• The option can be closed with a reverse trade before expiry.

Risks

For purchased options

• The option premium amount is an instant cost.
• In the event of a positive move, it tends to have a higher cost compared to forwards, as the option is a complex financial product.

For written options

• The maximum amount of profit on the written option is the amount of the option premium, while the loss can be unlimited.
• The cost of closing an option depends on specific market conditions, which may exceed the cost of closing forwards with the same nominal value.
• It is a complex product, so the identification of risks requires greater preparedness on the part of clients (a thorough knowledge of the product information is required to fully understand the risks).
  
  

Experts

If you would like to become a client of OTP Global Markets, feel free to contact us.

Useful documents

These documents in English language to the person concerned shall be for information purposes only. OTP Bank Plc shall fulfil its obligations imposed by the legal regulations or requirement of supervisory authority by the documents in Hungarian language.
In the event of any discrepancy between the English language and Hungarian language versions, the Hungarian language version shall prevail.

Information on the suspension of the market making obligation (available only in Hungarian)