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.
At Saxo we believe that when you invest, you unlock a new curiosity for the world around you. As a provider of multi-asset trading and investment solutions, Saxo’s purpose is to Get Curious People Invested in the World. We are committed to enabling our clients to make more of their money. Saxo was founded in Copenhagen, Denmark in 1992 with a clear vision: to make the global financial markets accessible for more people. In 1998, Saxo launched one of the first online trading platforms in Europe, providing professional-grade tools and easy access to global financial markets for anyone who wanted to invest.
Today, Saxo is an international award-winning investment firm for investors and traders who are serious about making more of their money. As a well-capitalised and profitable Fintech, Saxo is a fully licensed bank under the supervision of the Danish FSA, holding broker and banking licenses in multiple jurisdictions. As one of the earliest fintechs in the world, Saxo continues to invest heavily into our technology. Saxo’s clients and partners enjoy broad access to global capital markets across asset classes on our industry-leading platforms. Our open banking technology also powers more than 200 financial institutions as partners by boosting the investment experience they can offer their clients. Keeping our headquarters in Copenhagen, Saxo has more than 2,500 professionals in financial centres around the world including London, Singapore, Amsterdam, Hong Kong, Zurich, Dubai and Tokyo.
For more information, please visit: www.home.saxo