Currency option
Currency option is a financial instrument that provides the holder with the right to buy (Call option) or sell (Put option) a certain currency at a predetermined exchange rate. This right can be exercised in the case of European-style options on a specific future date (known as the expiration date) or at any time up to this date in the case of American-style options. The buyer of the option pays the seller an option premium for this right. Currency options have various variations (barrier, digital, and others), and their combination allows the client to create different option strategies (risk reversal, straddle, butterfly, and others).
Unlimited profit potential
Loss potential limited to the amount of the paid option premium
Flexible instrument that can also be combined into strategies and structured products
The product is intended for clients whose goal is:
- minimization of exchange rate risk arising from future cash flows involving conversion from one currency to another (future foreign exchange payments, transfers between accounts in the future, etc.)
Conditions for concluding a transaction
- signed Request for trading with the Bank
- minimum nominal amount of 100 000 EUR (or equivalent in another currency)
- sufficient coverage to settle the option premium
- EMIR and LEI code i
- trade agreement time: 8:30 AM – 4:00 PM
https://www.tatrabanka.sk/en/business/financial-markets/currency-option/