Currency options and strategies 

Currency option represents the right to purchase (Call) or sell (Put) one currency against another on the specified day in the future at a previously arranged exchange rate. Premium is paid for option purchase, client receives premium for option sale.

Options

We offer these options:

  • Reinsurance against currency risk by investing into purchase of options
  • Option owner has a possibility to choose, i.e. he/she can request deal performance or get out of deal
  • Cost-free currency reinsurance (hedging) is possible by a beneficial combination of currency options

Comparison

Purchased option Forward
Minimum volume €50,000  Minimum volume €30,000 
Right to purchase/sell 1 currency against another  Obligation to purchase/sell 1 currency against another 
Necessity to pay premium No initial costs
Client chooses exchange rate (Strike) Exchange rate calculated by client dealer
Flexible hedging tool with numerous variations  Simple hedging tool 

Conditions:

  • Minimum volume €50,000
  • Settlement within 1 year
  • Conclusion of deals via telephone from 8:30 a.m. until 4:00 p.m.
  • Possibility of settlement without delivery (Non Delivery), by telephone
  • Signed contract with the Clients Department, Capital Markets Division

Capital markets division client department contact

+421 2 5919 2044
customerd@tatrabanka.sk

www.tatrabanka.sk | Dialog: *1100 | Tatra banka a.s.
https://www.tatrabanka.sk/en/business/financial-markets/currency-options-strategies/