Saxo Bank, the leading Copenhagen-based Retail FX and CFDs broker, has expanded its CFD offering with a range of CFD Options on a variety of option roots, covering puts and calls.
The over-the-counter (OTC) instruments, on 15 of the world’s largest stock indices, offered by Saxo Bank are based on Exchange Traded Index Options. CFD Options can be used for portfolio diversification by taking a position or hedging.
Magnus Sundby, Product Manager of CFD & Equities at Saxo Bank, commented:
“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.”
CFD Options by Saxo Bank differ from traditional Listed Options for its 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 democratize trading and investing”, Sundby added.
Available on SaxoTraderGO and SaxoTraderPRO for clients under Saxo Bank A/S as well as those in the United Kingdom, Singapore, and Australia, CFD Options are attractive for traders and investors as there is no spread markup and commission required when buying CFD options. Clients are only required to pay a premium up front.