Finance Feeds logo

Saxo Bank expands tradeable CFD universe with the launch of a new range of CFD options

Maria Nikolova

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.

Subscribe

Read this next

Digital Assets

Celsius to repay +70% of custody account holders’ claims

A New York bankruptcy judge today approved a deal struck between troubled crypto lender Celsius Network and its “custody account holders” that will allow them to begin immediate withdrawals of 72.5% of their claims.

Retail FX

eToro revenue halves in 2022, valuation drops to $3.5 billion

Israeli social trading network eToro today reported financial results for the financial year ended December 31, 2022.

Uncategorized

Investors transfers $424 million out of bitcoin funds in six weeks

Despite bitcoin’s decent surge last week, which took the primary cryptocurrency up 70% from the year’s low, digital asset investment products saw outflows for the 6th consecutive week.

Digital Assets

OKX has $9 billion in ‘clean assets’, shows latest proof of reserves

OKX, formerly known as OKEx, has released its fifth proof-of-reserves report amid increasing demand of crypto investors asking for transparency from exchanges they trade with.

Digital Assets

Circle seeks France license to launch Euro stablecoin

Circle, the issuer of the second-largest stablecoin by market capitalization, is seeking to get a dual registration in France as it aims to on-shore its flagship product for the European market – EUROC – a reserve-backed stablecoin.

Digital Assets

CryptoWallet.com Among Minority of Successful Companies to Renew Coveted Estonian License

CryptoWallet.com has successfully renewed its virtual currency service license from Estonia’s FIU for the third year in a row, despite regulatory changes that have made it harder for virtual asset providers to meet the required standards.

Inside View, Institutional FX

Time for brokers to add options trading as volumes explode on high volatility

“Usually, adding options to the typical CFDs and equities offering leads to fragmentation of the platform technology as many brokers will need additional back-end and front-end components, and that could be an important barrier for them. Apart from that, legal hassle and costs associated with proper licensing of market data could be a barrier at first. We are seeing this trend among market data vendors and exchanges to make it easier and more affordable.”

Metaverse Gaming NFT

GCEX’s DeFi education and prime brokerage offering available in DubaiVerse

“We are excited to be part of the developments of The Sandbox and to join other top players in the region, including our regulator, Dubai’s Virtual Asset Regulatory Authority (VARA), as part of the DubaiVerse. This is a great opportunity to bridge the gap between Web3 early adopters and GCEX clients, building a community around Web3 and digital assets.”

Digital Assets

Circle wants Fed to back USDC stablecoin after “very serious stress test” with collapse of SVB

The collapse of Silicon Valley Bank allegedly proves Circle’s point that there is a need for its USDC stablecoin to be backed by the U.S. Federal Reserve with its U.S. dollars held at the Fed.

<
✖