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Saxo Bank, the Danish investment services and retail forex and CFD broker, announced it is launching Intraday Margin – a new solution for reduced margin requirements on the most popular CFD Index Trackers in the broker’s offering.
According to the company statement, the new Intraday Margin offers clients greater flexibility during trading hours when the liquidity is strongest and maintains margins at prudent levels. It will let traders halve their margin requirements during the principal trading hours and phased out when underlying cash markets are about to close.
Initially, the new solution will be available for the main stock indices and CFD index trackers in Europe and the US, such as US 500, EU 50, GERMANY 30, UK 100, FRANCE 40, SPAIN 35 and SWISS 20. Later Saxo Bank will offer the Intraday Margins for other CFDs as well.
Along with the new margins, Saxo Banks introduces fixed spreads on its most popular CFD Index Trackers during the main trading hours and promises this would reduce the trading costs for its clients to up to 30%. The fixed spreads will be applicable to the main US, European and Asian Indices during the opening hours of the underlying cash market. They will apply under normal market conditions and up to a certain trade size.
”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,” said Claus Nielsen, Head Markets at Saxo Bank. “In line with our aim to enable clients to access markets as efficiently as possible, our Intraday Margins for CFDs and improved spreads have been designed to provide clients with increased flexibility during the trading day while also ensuring appropriate levels of margin for prudent risk management.”
The new features are the latest in a series of novelties offered by Saxo Bank in the past few months. Among them are enhancements to the in-house trading platforms SaxoTrader, SaxoTraderGO and a simplified equity rating model to determine the margin required for trading CFDs and stock options.