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What is the normal spread between buy and sell of knock-out options


Guest hkoptions

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Guest hkoptions

What is the normal spread between buy and sell of knock-out options?

I want to calculate in pip terms as well as in percentage terms how much will my cost be in terms of return trade?

Knock-out probably has single entry point where spread is there. 

How does knock-out works in terms of vanilla fx futures options where you end up paying 4 pips 99% of the time for two-way trade?

How different is knock-out from vanilla options?

 

 

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Hi @hkoptions, have a look at the KO info page linked below and compare with the link for regular options, on demo look at filling out the deal tickets for risk and returns.

KOs are intended for shorter time duration trades so have a tighter spread but instead incur overnight funding charges.

I don't think IG does FX 'futures options' (they do for indices, commodities and interest rates).

For FX there is dfb or forwards (futures) or options and KO options. 

https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/market-details/what-are-knock-outs

https://www.ig.com/uk/options-trading

https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/fees-and-charges/what-are-ig-s-options-bet-product-details

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