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About FX Options
What are FX Options?
Where can FX Options
    be Traded?
Product Specifications
Currency Table &
    Historical Rates
Trading Strategies
FAQs
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WHAT ARE FX OPTIONS?

Get exposure to rate movements in some of the most widely traded global currencies. Apply the same trading and hedging strategies you use for equity and index options, including spreads with up to four legs. ISE FX Options are cash-settled in US dollars, European-style exercise and can be traded directly from your existing brokerage account. Trading in FX Options open at 7:30 a.m* (New York Time) and close at 4:15 p.m.

• Foreign Currency Exposure: Available through an exchange-traded product.
• Transparency / Market Quality: Multiple quotes from large liquidity providers readily display actionable price and quantity.
• Accessibility: Trade from your existing brokerage account; a new account is not needed.
• Ability to Trade Spreads: Apply the same trading strategies you use for equity and index options.
FX Options are currently listed in 10 currency pairs, with dual conventions offered for four pairs. The USD-based, or "per US$," currency convention is available for all 10 pairs and allows investors to express their views on the strength or weakness of the U.S. dollar relative to global currencies. The "in US$" currency convention is the inverse of the USD-based convention.

FX Options provide investors with additional choice and flexibility to hedge their currency exposure risk. Since they are cash-settled in U.S. dollars, there is no need for investors to hold the actual foreign currency.

Investors should always view currency options in terms of the base currency. Those who are bullish on the base currency should buy calls. Those who are bearish on the base currency should buy puts. There are several ways investors can trade their views, depending on the base currency.

FX Options, the USD-based, or "per USD", currency option allows investors to trade their views on the U.S. dollar relative to the Canadian dollar (Symbol: CDD). When trading this product, an investor who is bullish on the U.S. dollar and, therefore, bearish on the Canadian dollar, would buy CDD calls. An investor who is bearish on the U.S. dollar and bullish on the Canadian dollar would buy CDD puts.

If an investor wanted to trade using "in US$" currency convention for the Euro (Symbol: EUU), and was bullish on the Euro - the base currency - and bearish on the U.S. dollar, they would buy EUU calls. An investor who is bearish on the Euro and bullish on the U.S. dollar would buy EUU puts.

Investors can access the underlying rates for FX Options directly from www.fxoptions.com\quotes or from several leading market data vendors and financial websites, including Bloomberg, ILX, Reuters and Yahoo! Finance.

*market orders will not be accepted between 7:30 a.m.-9:30 a.m (New York Time).
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