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The new tool offering is appealing for longer term trend traders, eliminates roll-over charges
Leading European forex and CFD brokerage Saxo Bank has announced that is expanding its offerings with an exotic product – futures spread trading. Starting this week the clients of the firm will be able to trade futures spreads on a variety of assets including agricultural commodities, energy, indices, bonds and metals. The products will be available across the full spectrum of Saxo Bank’s platforms.
The main treat for customers is that this new way of trading futures will be reducing their costs as they will be able to roll over existing positions without having to pay their commissions for multiple orders. A single ticket order policy is in place for the new offering and clients will be able to roll over to the next maturity date with no additional legging and spread risks.
Saxo Bank’s Futures and Listed Options Product Manager Patrice Henault has commented that the spread is defined as the sale of one or more contracts and the purchase of an offsetting one in the same assets, but with a different expiry month. This results in decreased volatility and the contract itself handles the risk in the difference between two different trading months.
A client for example is able to go short on September Corn Futures and go long on December Corn. According to Mr. Henault calendar spreads are less volatile and provide trending conditions more often and more steeply for a longer period of time than others forms of trading.
If you would like to know more details about the new offering visit Saxo Bank’s website.