Saxo Bank launches stock options trading
LONDON, April 29
LONDON, April 29 (Reuters) - Denmark's Saxo Bank has added equity options to its trading platform in response to a growing appetite for derivatives products among both retail and institutional investors, the company said on Wednesday.
Saxo Bank, which already allows clients to trade a range of assets including foreign exchange, contracts for difference, exchange traded-funds and equities, will provide access to the 200 most liquid stock options in the United States, Europe and Asia-Pacific region. A further 150 instruments will be added at a later date, it said.
An option gives the buyer or holder the right, but not the obligation, to buy or sell an underlying financial asset at a pre-determined price.
Saxo Bank said there had been a 6.4 percent rise in the number of derivatives traded on-exchange last year and that investors were looking for more diversity in their portfolios.
"Investors are becoming more aware of how they can hedge their exposure in asset classes such as equities or as a means of locking in existing gains," it said in a statement.
(Reporting by Clare Hutchison; Editing by Pravin Char)