FX Options: relation between premium prices in percentage vs in pips


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FX options can be negotiated either in percentage or in pips (price interest points).

This illustrates the various equivalences to convert a price in % to pip or vice versa.

Main relation rule :

Premium in pips = strike / premium in % x 100

Premium in % = premium in pips / strike / 100

 

 

Premium_rates_relations

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