Danish trading and investment specialist Saxo Bank has launched a reduced margin requirement solution for its most popular CFD Index Trackers. The aim is to provide greater flexibility during trading hours with most liquidity while maintaining margins at prudent levels.
The reduced intraday margins will initially 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 due to close. Saxo intends to offer Intraday Margins on a wider range of CFDs in the future.
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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”.
Saxo Bank, which last week announced two senior appointments as part of its plans to grow and invest in its retail and institutional functions across the Middle East, has also introduced fixed spreads on CFD Index Trackers, applicable during main trading hours and in normal market conditions. This means that clients will experience a reduction in trading costs of up to 30% on the most popular CFD Index Trackers.
As a result, clients will experience an improved trading experience and a high degree of certainty with regard to the 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.
The new initiatives follow a series of other recent improvements to Saxo Bank’s CFD offering including active pricing on equity products and Direct Market Access on Single Stock CFDs.