Saxo Bank, a multi-asset brokerage, announced today that it is expanding its product offering. Specifically, the firm will now start offering contracts for difference (CFD) Options on a variety of option roots, covering puts and calls on 15 of the largest stock indices in the world.
According to the statement, the new product will be available to trade on SaxoTraderGO and SaxoTraderPRO for clients of Saxo Bank A/S, as well as customers of the Danish broker based in the United Kingdom, Singapore and Australia.
CFD Options are over-the-counter (OTC) instruments that are based on exchange traded index options. The broker highlights that the addition of this product will allow its clients to diversify their portfolios. This is because this product allows clients to take a position and it can also be used for portfolio hedging purposes.
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The new CFD options are European-style. This means that they are cash-settled at the official settlement price. As a result, customers of Saxo Bank can use the instruments to place directional bets by buying puts or calls.
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.”
Saxo Bank continues to expand its suite of products
The new range of options is the latest product expansion for Saxo Bank. Back in June, Finance Magnates reported that the broker was adding China A-Shares to its service offering. However, investors in the UK and Japan were excluded from the offering, with the firm stating that it would allow access to the shares at a later stage.