Saxo Bank launches CFDs on Government Bonds

Saxo Bank, the online multi-asset trading and investment specialist, today has added CFDs on Government Bonds to the existing range of asset classes available to trade. The new products are available on SaxoTrader, SaxoWebTrader, SmartMobileTrader and the SaxoTrader App and they include; French OAT (10y), Italian BTP (10y), German Bund (10y), German Bobl (5y) and German Schatz (2yr).

The new offering will enable retail clients to invest directly in European debt with favorable terms compared to those offered on the futures markets. These terms include much lower Margin Requirements Margin Requirements A margin requirement is defined as the minimum equity sum that investors must keep in their margin account preceding a trading transaction. Margin requirements may be referred to as maintenance margin, minimum maintenance, or maintenance requirement. This is a requirement for broker trading in any asset class.In terms of equities, the New York Stock Exchange (NYSE) and Financial Industry Regulatory Authority (FINRA) have a fixed margin requirement of 25% of the sum value of the securities presen A margin requirement is defined as the minimum equity sum that investors must keep in their margin account preceding a trading transaction. Margin requirements may be referred to as maintenance margin, minimum maintenance, or maintenance requirement. This is a requirement for broker trading in any asset class.In terms of equities, the New York Stock Exchange (NYSE) and Financial Industry Regulatory Authority (FINRA) have a fixed margin requirement of 25% of the sum value of the securities presen Read this Term lower minimum trade sizes and tick values as well as no financing costs, Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term fees or minimum commissions. CFDs on Government Bonds also create the conditions for retail investors to trade the underlying asset with much better control of their exposure to risk margin.

Didier Abbato, Product Manager, Multi-Asset CFDs and Cash Products, Saxo Bank commented:

“Bond CFDs provide a cost-efficient way for experienced investors to trade on the political risk and uncertainty in the Eurozone that have overshadowed financial markets. These products have previously only been available for institutions to trade. By adding this asset class to our platform retail investors can now access a desirable product that has until now been unavailable to them.”

CFDs on Government Bonds will be available from this week to clients of Saxo Bank A/S, Saxo Banque and Saxo Capital Markets UK. Switzerland and all White Label clients will be able to offer CFDs on Government Bonds to their clients from 1 November, 2012.