Saxo Bolsters CFD-offering
COPENHAGEN, Denmark, August 31, 2016
Saxo Bolsters CFD-offering With Reduced Margin Requirement Solution and Improved Spreads for CFD Index Tracker
The new Intraday Margins Offer Clients Greater Flexibility During Trading Hours When Liquidity is Strongest in the Underlying Futures and Cash Markets, While a new Spread Offering Reduces Trading Costs With up to 30% for the Most Popular Index Trackers.
Saxo Bank, the trading and investment specialist, has today launched a reduced margin requirement solution for its most popular CFD Index Trackers which provides greater flexibility during trading hours with most liquidity while maintaining margin at prudent levels. Initially, the reduced intraday margins will be available on selected CFD Index Trackers on main stock indices in Europe and the US such as US 500, EU 50, GERMANY 30, UK 100, FRANCE 40, SPAIN 35 and SWISS 20.
Saxo’s Intraday Margin will enable clients to reduce their margin requirements during the principal trading hours given the stronger liquidity in the underlying market, while maintaining margin requirements at responsible levels. The Intraday Margins, which accounts for half of the normal margin requirements, is applied during main trading hours and phased out when underlying cash markets are about to close. Going forward, Saxo intends to offer Intraday Margins on a wider range of CFDs.
At the same time, Saxo Bank introduces “fixed” spreads on CFD Index Trackers, applicable during main trading hours and in normal market conditions, meaning that clients will experience a reduction in trading cost of up to 30 % on the most popular CFD Index Trackers. This gives clients an improved trading experience and a high degree of certainty with regards to trading costs associated with entering and closing CFD Index Tracker positions. For the main US, European and Asia-Pacific Indices, the spreads are fixed at the minimum target spreads during the opening hours of the underlying cash market. “Fixed” spreads apply under normal market conditions and up to a certain trade size.
Commenting on the launch, Head Markets at Saxo Bank, Claus Nielsen, said: “We have experienced strong client interest in our CFD Index Tracker offering, and we want to make sure that clients are able to trade flexibly and responsibly taking the liquidity available in the underlying futures and cash markets into account.
In line with our aim to enable clients to access markets as efficiently as possible, our Intraday Margins for CFDs and improved spreads have been designed to provide clients with increased flexibility during the trading day while also ensuring appropriate levels of margin for prudent risk management.”
About Saxo Bank
Saxo Bank Group (Saxo) is a leading multi-asset trading and investment specialist, offering a complete set of investment and trading technologies, tools and strategies.
For almost 25 years, Saxo’s mission has been to enable individuals and institutions by facilitating their access to professional investing and trading through technology and expertise.
As a fully licensed and regulated bank, Saxo enables its private clients to trade multiple asset classes across global financial markets from one single margin account and across multiple devices. Additionally, Saxo provides institutional clients such as banks and brokers with multi-asset execution, prime brokerage services and trading technology.