Forex options product details

Barriers

Notes

1. Barriers, or barrier options, are trades on a bought option, which means you cannot go short on them. You can buy a call barrier option if you expect the market to rise, and buy a put barrier option if you expect the market to fall.
2. Barriers are not available for rollover, regardless of any instructions held on your account. All barriers are settled based on a pre-determined expiry rule. To find out more, look at each market’s individual information in the platform.
3. Trades not already closed by you or knocked out expire automatically at the date/time indicated.
4. A barrier option is automatically closed off at 0 if the relevant bid/ask reaches the knock-out level before expiry. The knock-out level chosen by you is guaranteed and therefore protected from slippage.
5. The open price (premium) of a barrier option is the difference between the underlying IG price and the knock-out level, plus the knock-out premium. The knock-out premium is included in our spread, so you pay it when you buy to open and receive it back if you sell to close before your knock-out level is triggered.
6. The knock-out premium is variable, based on anticipated risk in the underlying market. The premium may increase if market volatility increases, and decrease if market volatility decreases. It is possible the value of the knock-out premium will change while you have an open position. If the premium increases your knock-out will be worth more, and if the premium decreases your knock-out will be worth less.
7. Spreads are subject to variation, especially in volatile market conditions. The spreads are equivalent to underlying IG market spreads. Please see the individual IG underlying market pages (indices, forex, commodities and cryptocurrencies) for further information on how their spread is determined.
8. The cost of buying a barrier option is the opening price (premium) multiplied by the size of the bet. This is the maximum amount that the bet can lose.
9. Commission applies upon both the opening and closing of a trade
10. Normal dealing hours for all pairs are from 9pm (London time) on Sunday until 9.59pm (London time) on Friday, with the exception of emerging-market pairs, which operate on different schedules. All dealing times listed are London times. Please note that Daylight Savings Time in the UK or the country of origin may cause the times shown to be imprecise.
11. The minimum transaction size is one contract. Transactions above this minimum size, can be in fractions of a contract.
12. Average spread (Monday 0.00 - Friday 10pm GMT) for the 12 weeks ending 29th May 2020.
13. Spreads are subject to variation, especially in volatile market conditions. Our quotations are derived from quotes in the underlying market available to us from the banks and liquidity providers with which we trade. We monitor the liquidity available in the underlying market, offering our minimum spread when the market spread is particularly small. In most other conditions, our typical spread applies. If spreads move wider in the underlying market, we may match this. We do not apply any weighting or biases to our pricing sources.

FX overnight funding charges

For foreign exchange transactions, adjustments are made to calculate the cost of funding a position, and these are posted to your account daily. The adjustments are calculated as follows:

A = V x R
Where:
A = the funding cost
V = the number of contracts
R = the current tom-next rate

If the tom-next rate is less than zero, you will be debited for running a short position and credited for running a long position. If the tom-next rate is greater than zero, you will be credited for running a short position and debited for running a long position.
Note: For any position opened before 22.00 Wednesday that is still open after 22.00 Wednesday, the daily interest credit or debit will be made for three days as opposed to one. This three-day adjustment covers settlement of trades over the weekend period.
Seperately an admin fee of 0.3% per anuum will be applicable for holding positions at 10pm (London Time)

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