What OTC products does StoneX offer?

The StoneX trade desk can tailor OTC products to meet a wide range of risk profiles and market views. Products range from simple swaps to customized and exotic options to structured products. Below is an overview of the four principal product types we trade: Lookalike Options and Swaps: Lookalike Options and Swaps are also known as Plain Vanilla Options or Swaps and are SXM’s most basic OTC product. “Lookalikes” contain the same hedge and optionality features as their exchange-traded equivalent so far as contract specifications of strike price, contract size and expiration date Customizable Options: Customizable Options are Lookalike Options with the additional benefit of customizable strike price, contract size and expiration date. While the customizability allows this product to rein in a better hedge for the customer, it does limit the Customized Options optionality from being fungible with the exchange. Due to this lack of fungibility, Customized Options cannot be translated to an exchange-traded equivalent unless and until the option expires to a swap. The swap can then be translated into an exchange-traded equivalent futures position. Exotic Options: StoneX Markets utilizes the Exotic Options of Asian, Digital and Barrier options. Because the exchange does not have anything similar to these products, the options are not fungible with an exchange-traded option. However, as with all of our OTC Instruments, credit financing is available to offset margin costs and if the option expires into a swap an EFRP can translate the swap to a corresponding exchange-traded futures position.Asian options determine payout by figuring the average of the underlying price over a pre-set period of time. Example, an average of the futures settlement each Friday for a month.Digital options also known as Binary or All-Or-Nothing options pay the owner a fixed amount if the market settles at a predetermined level. On the reverse, if it does not settle at that level, the owner receives zero. Barrier options also known as “knock out/knock in” “down-and-out/down-and-in” or “up-and-out/up-and-in” are based on the market touching a pre-determined level where the option is either activated (knocked-in) or deactivated (knocked-out). Structured Products: Structured Products/Accumulators allow a Customer to “accumulate” short swaps above the current market or long swaps below the current market so long as the market stays within specified range. This range is decided upon by the Broker/Customer with the range limitations typically being marked by an accumulation level on one end and a barrier level on the other end. To learn more about how these benefits may apply to your specific market view and risk management needs, please contact us.

What are OTC markets?

OTC, or over-the-counter markets, are decentralized platforms where financial instruments such as derivatives are traded directly between two parties without the involvement of an exchange. OTC markets are often used for customized, complex, or illiquid products that cannot be traded on public exchanges. In the commodities market, OTC trading is used to hedge against price volatility risk, which is a common concern for farmers/producers, grain elevators/grain originators, and food and beverage manufacturers. StoneX can help you navigate a comprehensive array of choices for your hedging needs – from plain vanilla options and swaps to lookalike options, exotic options and structured products.

Manage risk and maximize opportunities trading OTC with StoneX

Benefit from superior customizability, relaxed margin requirements and better control over your input costs by trading over the counter (OTC) versus on the exchanges.

StoneX puts the power of the OTC markets in your hands.

Develop strategies, customize inputs, execute swaps and analyze your hedging profile – all from your desktop – with tools and platforms developed with your business in mind. Visit the StoneX OTC Technology page to learn more.

Explore our technology

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Who can benefit from trading over the counter with StoneX?

Elevators

Grow your business with the customized origination tools your producers now expect.

OTC benefits for grain elevators/originators:

Unique pricing mechanisms embedded into forward contracts allow for increased grain origination
The ability to help your producers better manage their risk via OTC structures and products
Qualifying operations can benefit from SXM’s initial and variation margin thresholds

Large grain silos and storage facility in a rural agricultural setting under clear blue sky

Farmers

Keep control of your bushels and basis while managing your biggest and most volatile expenses.

OTC benefits for farmers/producers:

Average grain sales on a daily or weekly basis, potentially at prices above the market
Maintain physical control over bushels and basis
Interest rate swaps prevent variable rate loans from eating into your bottom line

Farmer inspecting corn plants in a sunlit field during harvest season

Corporates

Trade the OTC markets and protect your margins against budget-busting upside price risk.

OTC benefits for food and beverage companies/corporates:

Better control over key commodity costs and ability to manage profit margins
Customizable terms for hedging specific quantities over defined periods based on the unique needs of your business
Deeper liquidity and better pricing

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Have questions? We can help.

Want to know how our products and services can work for you? Our StoneX Support Team is ready to assist with any questions you have and provide a customized solution to meet your needs.

Get in touch

Advantages of trading OTC with StoneX Markets

Customizable solutions for your business

We structure every OTC trade with your unique risk profile in mind – a benefit you will not see on the exchanges.

Potentially lower margin requirements

Our margin requirements are typically 20% less than commonly available exchange-mandated margin requirements.

Equal or better liquidity compared to the exchanges

Our deep liquidity means we can extend positions beyond the time periods available via exchange-traded products.

Explore our OTC solutions

Comprehensive commodity markets coverage

Experience unrivaled OTC trading with StoneX Markets – covering diverse markets from dairy to interest rates, our tailored solutions optimize your exposure and liquidity management.

Markets covered

Black cattle grazing and resting in an open pasture with mountains in the background

Market Intelligence: Recent articles

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Article 4 - Is the Bearish Bias Returning to the Market?Sun, Sep 28, 2025 at 06:16 AM

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test for Monika 3Wed, Sep 24, 2025 at 09:44 AM

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Discover more insights

Dive into comprehensive market analysis from StoneX spanning commodities, equities, currencies and more.

Explore Market Intelligence

Upcoming events

October

8th StoneX Multicommodities Seminar

Webinars

South America

Language: Português Brasileiro

StoneX’s largest event, aimed at bringing together market analysis and experts to provide an up-to-date and strategic overview of key agricultural markets, as well as fertilizers, energy, foreign exchange, and macroeconomics.

Learn more

October

8th StoneX Multicommodities Seminar

Webinars

South America

Language: Português Brasileiro

Learn more

October

Sugar Breakfast StoneX

Live StoneX events

South America

Language: Português Brasileiro

A strategic event that brings together StoneX risk management consultants to foster networking, updates, and planning.

Learn More

FAQ

The StoneX trade desk can tailor OTC products to meet a wide range of risk profiles and market views. Products range from simple swaps to customized and exotic options to structured products. Below is an overview of the four principal product types we trade:

Lookalike Options and Swaps: Lookalike Options and Swaps are also known as Plain Vanilla Options or Swaps and are SXM’s most basic OTC product. “Lookalikes” contain the same hedge and optionality features as their exchange-traded equivalent so far as contract specifications of strike price, contract size and expiration date
Customizable Options: Customizable Options are Lookalike Options with the additional benefit of customizable strike price, contract size and expiration date. While the customizability allows this product to rein in a better hedge for the customer, it does limit the Customized Options optionality from being fungible with the exchange. Due to this lack of fungibility, Customized Options cannot be translated to an exchange-traded equivalent unless and until the option expires to a swap. The swap can then be translated into an exchange-traded equivalent futures position.
Exotic Options: StoneX Markets utilizes the Exotic Options of Asian, Digital and Barrier options. Because the exchange does not have anything similar to these products, the options are not fungible with an exchange-traded option. However, as with all of our OTC Instruments, credit financing is available to offset margin costs and if the option expires into a swap an EFRP can translate the swap to a corresponding exchange-traded futures position.
- Asian options determine payout by figuring the average of the underlying price over a pre-set period of time. Example, an average of the futures settlement each Friday for a month.
- Digital options also known as Binary or All-Or-Nothing options pay the owner a fixed amount if the market settles at a predetermined level. On the reverse, if it does not settle at that level, the owner receives zero.
- Barrier options also known as “knock out/knock in” “down-and-out/down-and-in” or “up-and-out/up-and-in” are based on the market touching a pre-determined level where the option is either activated (knocked-in) or deactivated (knocked-out).
Structured Products: Structured Products/Accumulators allow a Customer to “accumulate” short swaps above the current market or long swaps below the current market so long as the market stays within specified range. This range is decided upon by the Broker/Customer with the range limitations typically being marked by an accumulation level on one end and a barrier level on the other end.

To learn more about how these benefits may apply to your specific market view and risk management needs, please contact us.

StoneX: We open markets

Our market expertise, advanced platforms, global reach, culture of full transparency and commitment to our clients’ success all set us apart in the financial marketplace.

Reach

With access to 40+ derivatives exchanges, 180+ foreign exchange markets, nearly every global securities marketplace and numerous bi-lateral liquidity venues, StoneX’s digital network and deep relationships can take clients anywhere they want to go.

Transparency

As a publicly traded company meeting the highest standards of regulatory compliance in the markets we serve; our financials and record of accomplishment are matters of public record. StoneX’s commitment to “doing the right thing over the easy thing” sets us apart in the industry and helps us build respect, client trust and new partnerships.

Expertise

From our proprietary Market Intelligence platform, to “boots on the ground” expertise from award-winning traders and professionals, we connect our clients directly to actionable insights they can use to make more informed decisions and achieve their goals in the global markets.

The subsidiaries of StoneX Group Inc. provide financial products and services, including, but not limited to, physical commodities, securities, clearing, global payments, risk management, asset management, foreign exchange, and exchange-traded and over-the-counter derivatives. These financial products and services are offered in accordance with the applicable laws in the jurisdictions in which they are provided and are subject to specific terms, conditions, and restrictions contained in the terms of business applicable to each such offering. Not all products and services are available in all countries. The products and services offered by the StoneX Group of companies involve risk of loss and may not be suitable for all investors. Full Disclaimer.

This website is not intended for residents of any particular country, and the information herein is not advice nor a recommendation to trade nor does it constitute an offer or solicitation to buy or sell any financial product or service, by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. Please refer to the Regulatory Disclosure section for entity-specific disclosures.

No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc. The information herein is provided for informational purposes only. This information is provided on an ‘as-is’ basis and may contain statements and opinions of the StoneX Group of companies as well as excerpts and/or information from public sources and third parties and no warranty, whether express or implied, is given as to its completeness or accuracy. Each company within the StoneX Group of companies (on its own behalf and on behalf of its directors, employees and agents) disclaims any and all liability as well as any third-party claim that may arise from the accuracy and/or completeness of the information detailed herein, as well as the use of or reliance on this information by the recipient, any member of its group or any third party.

The trading of commodities and derivatives such as futures, options, and swaps involves substantial risk of loss and may not be suitable for all investors. Advisory services as well as the trading of futures and options is available through various subsidiaries of StoneX Group Inc. including but not limited to the FCM Division of StoneX Financial Inc. Public Disclosures for the FCM Division of StoneX Financial Inc. The trading of over-the-counter products or swaps is available through subsidiary StoneX Markets LLC to individuals or firms who qualify under CFTC rules as an eligible contract participant. Please click here for the full disclaimer.

Trading over-the-counter and exchange-traded derivatives is not suitable for all investors and involves substantial risk. StoneX Markets, LLC (“SXM”), a subsidiary of StoneX Group Inc., is a member of the National Futures Association and provisionally registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a swap dealer. SXM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ (“ECP”) and who have been accepted as customers of SXM. Any recipient of this material who wishes to express an interest in trading with SXM must first prequalify as an ECP, independently determine that derivatives are suitable for them and be accepted as a customer of SXM. Trading over-the-counter (“OTC”) products or “swaps” involves substantial risk of loss. This is not an offer to buy or sell any derivative. This material does not constitute investment research and does not take into account the particular investment objectives, financial situations, or needs of individual clients or recipients of this material. You are directed to seek independent investment and tax advice in connection with derivatives trading.

StoneX Financial Pte Ltd (“SFP”) (Co. Reg. No 201130598R) is regulated by the Monetary Authority of Singapore (“MAS”) as a Capital Markets Service Licence holder (for dealing in capital market products), an Exempt Financial Adviser (for advising on investment products and issuing or promulgating analyses/ reports on investment products) and a Major Payment Institution (for domestic and cross-border money transfer services).

StoneX Financial (HK) Limited (CE No.: BCQ152) (“SHK”) is regulated by the Hong Kong Securities and Futures Commission for dealing in securities and dealing in futures contracts.

StoneX Financial Pty Ltd (“SFA”) (ACN: 141 774 727) holds an Australian Financial Service License (AFSL: 345646) for Dealing in Securities, Exchange-Traded Derivatives Contracts, OTC Derivatives Contracts and Foreign Exchange Contracts and is regulated by the Australian Securities and Investments Commission.

StoneX Securities Co., Ltd. (“SSJ”) (Co. Reg. No 010401047199) is regulated by the Japanese Financial Services Agency as a Type-I Financial Instruments Business Operator (Kanto Local Finance Bureau (FIBO)No.291’), is a member of the Financial Futures Association of Japan for dealing and brokering FX and FX Option transactions, and is a member of the Japan Securities Dealers Association for dealing and brokering stock indices and option transactions.