Saxo Introduces Futures Spread Trading

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Feb 18, 2014, 04:00 ET

HELLERUP, Denmark, February 18, 2014 /PRNewswire/ --

Saxo Bank, the online trading and investment specialist, is further enhancing its product portfolio for its retail and institutional clients through the introduction of futures spread trading.

From 18 February, clients will be able to trade futures spreads on a variety of assets across all of Saxo Bank's platforms, including its SaxoTrader mobile apps for smartphone and tablets. The introduction of this product to Saxo Bank's offering enables its clients to trade intramarket futures spread as well as named calendar futures spreads on a range of key contracts including gold, oil and other commodities, interest rates, bonds and major stock indices.

One of the key attractions of futures spread trading is the ability to use a single order ticket to roll over your Futures contracts before expiry to the next maturity date, with no legging risk or spread risk.

Patrice Henault, Futures and Listed Options Product Manager at Saxo Bank, commented:

"A calendar spread is defined as the sale of one or more contracts and the purchase of one or more offsetting futures contracts in the same market but in different a month, for example Short September Corn and Long December Corn. The calendar spread trader positions himself between the speculator and the hedger. Rather than take risk of excessive price fluctuations, he takes on the risk in the difference between two different trading months. Calendar spreads are less volatile than other forms of trading including share trading, option trading and straight futures trading. In fact, it is because of such low volatility that margins for spreads are so low. Spreads typically trend more often, more steeply and for a longer time than do other forms of trading".

About Saxo Bank

Saxo Bank is a leading online trading and investment specialist, offering private investors and institutional clients a complete set of tools for their trading and investment strategies. Its financial community portal, TradingFloor.com, is the first multi-asset social trading platform. A fully licensed and regulated European bank, Saxo Bank enables clients to trade FX, CFDs, ETFs, Stocks, Futures, Options and other derivatives on our award-winning SaxoTrader platform, accessible on PCs, tablets or smartphones through a single account and available in more than 20 languages. The platform is white-labelled by more than 100 major financial institutions worldwide. Saxo Bank also offers professional portfolio and fund management as well as traditional banking services through Saxo Privatbank. Founded in 1992, Saxo Bank is headquartered in Copenhagen and has offices in 25 countries throughout Europe, Asia, the Middle East, Latin America, Africa and Australia.