What are vanilla fx options?

Vanilla FX Options provide the right (but not an obligation) to buy or sell a specified amount of one currency in exchange for another currency, at a rate agreed when the option is bought (strike rate), on an agreed settlement date.

They offer full protection against unfavourable changes in foreign currency values. You can benefit from a favourable exchange rate movement by transacting at the prevailing spot rate.

Benefits

  • Determine and budget your cash flows.

  • The opportunity to benefit from favourable foreign exchange movements.

  • Protection against the direct impact of unfavourable changes in foreign currency values.

  • Allows you to manage your foreign exchange risk and provides flexibility if your  circumstances change.

There are two types of Vanilla FX Options

Managing foreign exchange

Movements in foreign exchange rates can impact businesses differently, so it's important to have a strategy tailored to your specific needs.

Learn with NAB

International Money Transfers for Business

Learn more about sending money overseas for your business.

Global Markets Research

Helping you make sense of credit, foreign exchange, interest rates and commodity markets.

Subscribe to our FX Newsletter

Subscribe for access to monthly foreign exchange articles and insights for your business.

We're ready to help you

Request a call back
Call 1300 960 355

Mon-Fri 8am - 6pm (AEST/AEDT)

Talk to an expert