Saxo Capital Markets Launches Bond CFDs for Online Trading on 1 October
With effect from the 1st of October, Saxo Capital Markets will be expanding its CFD offering by adding five Bond CFD contracts.
The following Bond CFD contracts will be available for trading on the platform
|CFD||BUND||German Government 10 year Bund||Market +0.03||1%||100:1|
|CFD||BOBL||German Government 5 year Bobl||Market +0.03||0.5%*||100:1|
|CFD||SCHATZ||German Government 2 year Bobl||Market +0.015||0.5%*||100:1|
|CFD||10YBTP||German Government 10 year Bobl||Market +0.05||2%||50:1|
* Applies to the first EUR 50,000 in combined CFD collateral and for collateral in excess of Eur 50,000 the margin requirement will double the requirement indicated in the above table.
The above CFDs track the price of the underlying Futures Contract and trade with the Futures market spread with a small mark-up. There are no other fees or commissions when trading these CFDs. Compared to the underlying Futures Contracts, the CFDs carry a significantly lower margin requirement - from 0.5% and smaller minimum trade sizes, providing full flexibility when managing your portfolio.
What’s the difference between Bond CFDs and the Futures Contracts?
Below is a comparison using the German Bund as an example.
|Min. trade size||50 indices||1,000 indices|
|Min. tick value (0.01)||EUR 0.50||EUR 10|
|Costs/Commission||Spread||Spread + Commission + Exchange fee|
|Stocks/Bonds as collateral||Yes|
CFDs that track the price of an underlying Futures Contract expire just like the Future does. By default, on 1 October all clients who have access to trade CFDs on Commodities will also be enabled to trade these new CFDs.