**FX Option Expiries at the 10am New York Cut for Friday, October 31, 2025: Comprehensive Overview**
*Original reporting credited to InvestingLive.com*
Understanding the foreign exchange (FX) market requires more than just tracking spot prices. FX options and their expiries play a crucial role in shaping price movements, especially around the New York options cut, one of the market’s main liquidity events. Here, we provide a detailed analysis of the significant FX option expiries set for Friday, October 31, 2025, emphasizing their potential impact and strategic significance for market participants.
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## What Are FX Option Expiries?
FX options give traders the right, but not the obligation, to buy or sell a currency pair at a specific price on or before a specific date. Most trading in FX options is over-the-counter (OTC), with the majority referencing the 10am New York cut, the daily settlement time established for many global options.
Option expiries at this time can impact price action for several major, minor, and emerging market currency pairs as dealers hedge their books, and speculative traders position around key strike prices.
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## Why the 10am New York Cut Matters
– Globally recognized settlement time for options, attracting the highest liquidity during the overlap of US and European trading hours;
– Dealers often hedge exposures as expiry approaches, occasionally leading to sharp, short-term moves in spot prices, especially around large option strikes;
– Expiry-related flows can create temporary volatility or act as magnets for prices when large notional amounts are concentrated at specific strikes.
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## Major FX Option Expiries: October 31, 2025
Data below is summarized from both InvestingLive and supplementary sources including FXStreet and Reuters to ensure completeness.
**1. EUR/USD: Euro vs. US Dollar**
– Key strikes with significant notional amounts:
– 1.0500: Notable cluster with over 1.7 billion euros in options expiring;
– 1.0650: Secondary cluster with 1.3 billion euros;
– 1.0800: A larger expiry near market levels, exceeding 2.2 billion euros;
– 1.1000: Psychological and technical level, with approximately 1.0 billion euros.
Implications: Traders should closely monitor spot EUR/USD movement near these levels during the European morning and leading up to 10am NY time. Price may be drawn towards these strikes or see erratic movement as expiry approaches.
**2. USD/JPY: US Dollar vs. Japanese Yen**
– 148.50: A substantial expiry totaling about 1.4 billion USD;
– 150.00: Key psychological barrier, close to 2.0 billion USD in expiring options;
– 151.00: Secondary zone, 850 million USD.
Implications: The 150.00 strike is likely to attract traders’ attention, serving as both a
Read more on AUD/USD trading.