[Fegu]

Key product features

• Benefit from both positive and negative exchange rate moves.
• Unlimited profits.
• Upfront premium.
• Volatility trade.

Product description/scenario

• A Straddle is a simultaneous purchase of Vanilla Call and Put Options with the same strike, expiry, and notional.
• A Straddle is ideal for those who are expecting volatility in a currency pair to exceed expectations but who do not have a directional bias for the currency pair’s movement.

Example trade profile


Payout profile at expiry


Payoff description

• If spot at expiry is:
– Above strike (1.3000), the client can profit from buying EUR 1mio at 1.3000 in exchange for USD 1.30mio.
– Below the strike (1.3000), the client can profit from selling EUR 1mio at 1.3000 in exchange for USD 1.30mio.