Saxo Bank Recategorizes Equity Margin Requirements, Adds Greeks on Options
- Saxo Bank has fine tuned some of the instruments it offers to clients to better optimize the use of margin.
Danish multi-asset brokerage Saxo Bank has reshaped the way it is rating different stocks to determine margin requirements. Starting from the 12th of September, Saxo Bank will be introducing 5 categories to classify different equities depending in the risks associated with the positions.
The lowest rated in tier one will require 10 per cent margin on CFDs, while the highest rated in tier five will require 100 per cent margin. In addition, clients will be able to use a portion of the values of the stock positions as margin collateral for trading FX and other CFDs.
New rating tiers of equities traded via Saxo Bank, Source: Saxo Bank
Saxo Bank will be re-rating the positions on a continuous daily basis which will allow the brokerage to be in-tune with market conditions at all times. The move is likely to help clients avoid over-leveraging in particularly risky shares or ETFs and could be yet another boost to the profitability of clients following the positive results after the Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term vote.
Implied Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term and Greeks on Options
Looking at the options offering of Saxo Bank, traders are getting good news, which puts the Danish bank’s offering closer to some of the renowned options trading specialists in the industry. Aiming to bring its offering in line with what options traders are looking for, Saxo Bank has added a display for the Greeks and implied volatility to the 'Option Chain' display of the SaxoTrader platform.
Display of Greeks and Implied Volatility within the Option Chain on SaxoTrader, Source: Saxo Bank
Danish multi-asset brokerage Saxo Bank has reshaped the way it is rating different stocks to determine margin requirements. Starting from the 12th of September, Saxo Bank will be introducing 5 categories to classify different equities depending in the risks associated with the positions.
The lowest rated in tier one will require 10 per cent margin on CFDs, while the highest rated in tier five will require 100 per cent margin. In addition, clients will be able to use a portion of the values of the stock positions as margin collateral for trading FX and other CFDs.
New rating tiers of equities traded via Saxo Bank, Source: Saxo Bank
Saxo Bank will be re-rating the positions on a continuous daily basis which will allow the brokerage to be in-tune with market conditions at all times. The move is likely to help clients avoid over-leveraging in particularly risky shares or ETFs and could be yet another boost to the profitability of clients following the positive results after the Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term vote.
Implied Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term and Greeks on Options
Looking at the options offering of Saxo Bank, traders are getting good news, which puts the Danish bank’s offering closer to some of the renowned options trading specialists in the industry. Aiming to bring its offering in line with what options traders are looking for, Saxo Bank has added a display for the Greeks and implied volatility to the 'Option Chain' display of the SaxoTrader platform.
Display of Greeks and Implied Volatility within the Option Chain on SaxoTrader, Source: Saxo Bank