Currency options: hedge your exposure with more flexibility
Hedge currency exposure with flexible trading terms. Structures such as Forward Extra can protect you against a move in the wrong direction while leaving room if the market moves your way. Offered subject to eligibility.
What is an FX options contract?
An FX option gives you the right, but not the obligation, to exchange currency at an agreed rate. Standard options carry a premium. The Forward Extra family of structures has no premium payable: you set a protection rate and a barrier, and the outcome depends on whether the market reaches the barrier. These are structured products with trade-offs, so we explain them in your free analysis and confirm which, if any, fit your situation.
What an options contract can look like
Illustrative example only, not a quote. An option premium applies and is quoted before you commit. Terms depend on the currency pair, the expiry and market conditions.
Who uses options
How FinXtra works for your business
Forward or option?
A forward contract locks a rate and is an obligation: you get certainty, and you give up gains as well as losses. An option gives you the right, but not the obligation, to exchange at an agreed rate. Some structures have a premium, and the Forward Extra family has none but adds a barrier and a protection rate that is less favourable than the comparable forward. They solve different problems, and you can use both.
The Forward Extra family
These are structured products. Outcomes depend on the protection, barrier and reset rates agreed at the outset, and any examples are indicative only. They can involve obligations, may require margin on positions that move against you, and may not suit every business. Ask for the full product and risk information before you trade.
Why businesses choose FinXtra for hedging
- Flexible trading terms to match exposure that is not certain.
- Forward contracts up to five years when you need certainty instead.
- Access to wholesale FX liquidity, usually reserved for large corporations.
- Transparent pricing. No hidden fees, no surprises.
- 1,000+ clients worldwide.
FX options: common questions
What is the difference between an option and a forward contract?
A forward locks an exchange rate and you must exchange on the agreed date. An option gives you the right, but not the obligation, to exchange at an agreed rate. Structured options such as Forward Extra add a barrier that can turn the trade into an obligation.
Do I pay anything upfront for an option?
The Forward Extra structures have no premium payable. The trade-off is that the protection rate is less favourable than the comparable forward rate, and a barrier can turn the trade into an obligation. We explain the trade-offs before you commit.
What are the risks?
If the barrier is hit you may have to exchange the full amount, or a larger leveraged amount, at the agreed rate, which can be worse than the market rate. Positions that move against you may require margin. We go through the risks before you trade.
Can I use options and forwards together?
Yes. They can be combined, for example forwards for certain exposure and options for uncertain exposure. We help you structure it.
Are options right for every business?
No. They suit exposure that is uncertain or situations where you want to keep some upside. A forward may be simpler. We tell you which fits in your analysis.
Are there account opening fees?
Opening an account is completely free, and you get full access to the platform.
Is FinXtra regulated?
FinXtra works with Ebury, which provides the payment and foreign exchange services. Ebury Canada is registered with FINTRAC, and all client funds are held with Ebury Canada in line with regulatory standards. See the regulatory disclosure at the bottom of this page for the US, UK and Mexico.
This page is general information, not financial advice. Options and structured products involve risk, including obligations that can exceed the protected amount and margin requirements. Services are subject to eligibility and approval. Read the full product and risk information before you trade.
Find out whether an option, a forward or both fit your exposure
Book a free 20-minute FX analysis. We review your exposure and show you what works for your business, at no cost and with no commitment.
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