Saxo Bank expands tradeable CFD universe with the launch of a new range of CFD options
New product provides clients with access to 15 CFD options on the world’s largest stock indices
Saxo Bank, the online trading and multi-asset specialist, has today announced that it will begin to offer CFD Options on a range of option roots, covering puts and calls on 15 of the world’s largest stock indices.
The new product will be available on SaxoTraderGO (all devices) and SaxoTraderPRO for clients of Saxo Bank A/S as well as those in the United Kingdom, Singapore, and Australia.
CFD Options are OTC instruments based on Exchange Traded Index Options. They can help diversify a portfolio, as not only do they enable clients to take a position, they can be used for portfolio hedging purposes too.
Commenting on the launch, Magnus Sundby, Product Manager – CFD & Equities, said:
“This new product range will lower the entry barrier for clients looking to trade options, as CFD options reduce the cost of trading for clients by giving them access to cost-effective investment and hedging strategies as well as tools to help them manage the risk. Compared to traditional Listed Options, the CFD Options will also provide clients with greater flexibility in terms of contract size, since the lot is equal to one Index. By lowering the size of the contract, we allow more clients to trade Index Options, and enable them to manage their risk more efficiently - yet another example of how we continue to democratise trading and investing.”
CFD options are attractive for traders and investors as there is no spread mark-up and commission required when buying CFD options – clients simply pay a premium up front. And as one lot equals one index, they provide great flexibility in terms of contract size.
All new CFD Options are European style options that are cash settled at the official settlement price and clients can use the new instrument type to place directional bets by buying Puts or Calls.
With the product, clients will be able to create option strategies that will protect their existing portfolio against market risk.
More detail on Saxo’s CFD Options offering can be found here.
Saxo Bank is a leading Fintech specialist and global multi-asset facilitator of capital markets products and services. Saxo enables private clients to trade more than 35,000 instruments from one single margin account.
Additionally, Saxo provides institutional clients such as banks and fintechs with Open Banking solutions from multi-asset execution, prime brokerage services to trading technology. Founded in 1992, Saxo Bank has embraced Open Banking from the beginning and is focused on helping clients and partners through win-win partnerships and product innovation.
Since launching its first online trading platform in 1998, Saxo Bank works to empower everyone to navigate their financial future by opening up access to trading and investment. The Saxo Group’s client assets total more than 45 billion euros, and the Group employs more than 2100 people in financial centres around the world including London, Singapore, Amsterdam, Shanghai, Hong Kong, Paris, Zurich, Dubai and Tokyo.For more information, please visit www.home.saxo.