Read about Saxo Capital Markets online trading platform

Commission-free trading in Singapore finally!

Commission-free trading in Singapore finally! submitted by yudentes to singaporefi [link] [comments]

UK Guide to US Options Trading

This is guide to US options trading from the UK, because I've seen countless requests of people browsing in /ukinvesting, /options, /wallstreetbets etc. about this.
First thing's first - no part of this post is to be taken as financial advice. It is a guide on how to start options trading from the UK. Options/CFD trading is a high-risk activity and most retail traders lose money.

1. CFDs vs. Options

So getting started, options and contracts for difference (CFDs) are both financial derivatives - they derive their values from an underlying security e.g. stock, indices, currency, commodities. Long story short, CFDs do not have an expiration and options do; and at the option expiration date, options give the opportunity to buy/sell the underlying (e.g. stock) at the agreed strike price. CFDs are highly directional (delta) trades where positions require ongoing financing fees by a broker, whereas options strategies allow the trader to trade time decay (theta) as well as market volatility (vega). Options provide greater flexibility in trading strategies (time/volatility trading as well as direction); however, due to this, the more complex strategies can be difficult to understand.
Spread betting allows a literal directional bet of an underlying by a certain date. It is most similar naked options - i.e. if your position moves against you enough, your broker may forcibly close your position unfavourably and/or margin call you for extra cash ("you can lose more than your initial deposit"). With options/CFDs, you can define risk by specifying a profitability range (spreads) instead to avoid this scenario. Due to spread betting being so close to gambling, it is treated as such in the UK in terms of taxation - gains are tax free. I will also add here that CFDs/options can also be used in this manner (gambling, with subsequent margin calls etc.), and that CFD brokers tend to understate the risks of these strategies, whilst almost all options brokers require elevated permissions to seek out this level of risk - this is because blowing through margin presents a risk to the broker and they would rather have commissions without the risks of the brokerage going bust. The lowest level of permissions still allows you to buy extremely highly leveraged OTM options without margin, as your max loss is limited to the amount you paid for those options.

2. Brokers

Given that options effectively open up two additional aspects of trading (time/volatility) and require additional regulatory oversight compared to CFDs/spreadbetting, there is basically no options market in the UK - the only brokers at this time are IG/Saxo, and they only do vanilla options on Forex/Indices/Commodities. Everyone else only does CFDs and/or stock (T212, Freetrade, IG, Plus500 etc.). To engage in true stock options trading, the only choice is to open an international/US brokerage account.
The two that are accessible to UK investors are Interactive Brokers (IB) and TastyWorks. Both are reputable brokers and have strong insurances for cash & securities held with them.

3. Opening an account

I will walk through some of the aspects of funding and operating a TastyWorks account from the UK, as this is my recommendation if you're here looking for a cheap way to get started.
Opening a free account on TastyWorks is easy as they are used to foreign traders (form filling within 20-60 mins - you will need a photo of proof of ID and address). It typically takes 1 day for cash accounts and 2-3 days for margin accounts to be ready for funding. My referral link if you feel this guide deserves the effort is: https://start.tastyworks.com/#/login?referralCode=GD9EGGNZYZ. (mods, happy to remove this is this guide is deemed low effort)
The account types are:

4. Funding the Account

Since trading US options is done in USD, the account must be funded in USD. As international traders, deposits must be "By Wire", assuming you do not have a US bank account - full instructions for the "By Wire" method will show up when you are approved to fund your account. With TastyWorks, UK traders have 3 options at time of writing, going from highest to lowest fee:
1) Starling Bank: ~1% commission (+flat fee TBC?)
2) CurrencyFair: typical ~0.75% commission +$20 flat fee
3) TransferWise/Revolut + UK USD Account: ~0.5% commission +$20 flat fee
TastyWorks does not accept third party transfers (accounts not in your name), so services such as Revolut and TransferWise (inc. borderless) do not work directly
4.1 Starling Bank
With Starling Bank, you can do an international wire from a GBP account directly. Easy online bank setup and probably fastest way to get started, especially if you already bank with them. Note: Starling Bank is rejecting transfers to TastyWorks 'as it sits out of our international payment provider's risk appetite' (as of 11th May) - waiting for updates
Note that other routes include a $20 flat fee charged by intermediate banks before the transfer reaches TastyWorks. Haven't got confirmation that this route is charged or if Starling includes it within their higher fee.
4.2 CurrencyFair
TastyWorks have approved transfers via CurrencyFair with a guide at: https://support.tastyworks.com/support/solutions/articles/43000435321-can-i-use-currencyfair-to-fund-my-account-
Easy to get started, but a couple hoops to jump through to confirm your transaction to TastyWorks via email.
Note that the $20 flat fee is for an intermediary bank to take their cut between CF and TastyWorks, but that is not mentioned on the CurrencyFair website.
4.3 USD account + TransferWise/Revolut
The cheapest option is to set up a USD currency account and transfer through that.
The account of choice is the Barclays USD Foreign Currency account - you need a current account with them to be able to open the USD account. HSBC also have an offering, but not had this route confirmed.
Once the USD account is open, you can transfer into it using Revolut/TransferWise (cheap) and then international (wire) transfer from Barclays account to TastyWorks (free!). Note that the Barclays USD account is still a UK bank account, so you'll need to use a SWIFT transfer from Revolut/TransferWise to turn your GBP into USD.
Note that the $20 flat fee is for an intermediary bank to take their cut between Barclays and TastyWorks, but that is not mentioned on the Barclays website.
4.4 Withdrawals
To withdraw funds, do the opposite for a deposit, noting that $45 will be charged by TastyWorks per withdrawal.

5. Getting Started

I highly, highly recommend TastyWork's education centre and their TastyTrade videos, especially if you are new to this.
Otherwise, once funded, it's as simple as downloading the app on mobile, using the browser trading screen, or downloading their full desktop platform.
That's it for the guide - happy trading, and if there are any questions, feel free to get in touch and I'll edit the answers in here. I want this to be a resource because I've helped many people get started, and it would be good to have it all in one place!
submitted by TheScotchEngineer to UKInvesting [link] [comments]

Best broker to invest in SWRD/IWDA/EIMI? I did the math

Edit:Post has been updated with all feedback from comments
I've been trying to find out the best broker to invest in SWRD and even though InvestingForTwo and FinancialHorse have great articles they don't focus on these ETFs specifically and I wasn't sure if the fees comaprisons were still the same.
So to help other new 3-Fund Investors I've compiled what I found , if there are any mistakes please let me know.
Principles this assessment is based on
All money here is in USD
pandarable has pointed out Standard Charted Priority Banking is the best option once you hit 200KSGD (140KUSD) in *total assets* (savings + investments)
100K USD = ~140K SGD, so if one has 60K SGD of savings or SG investments it is best to switch to SCB as Priority Banking lets one trade overseas at 0.2% fees and in SG stocks at 0.18% fees and a host of other benefits
 
Interactive Brokers
To purchase SWRD, by default there is a minimum fee of $5 (Look for "LSE International Order Book and USD-denominated stocks")
However, as per u/bestblink, you can change it from "Fixed" to "Tiered" fee structure, reducing the fee to $1.90
For those 26 and above - $10 per month
Which translates to $120 per year on $10K of investments (1.2% fees)
For those 25 and below - $3 per month (Look for "Client is age 25 or under")
So even if you DCA every month or Lump Sum it, you will pay $36 in fees annually
So this is the bar to beat
 
Saxo
Saxo has two platforms SavoInvestor and SaxoTradeGo but they both have the same fee structure of 0.1% with a minimum of 8 GBP and a 0.12% annual custody fee
Look at "London Stock Exchange" ignore "London Stock Exchange (IOB)"
They convert the "min.GBP 8" fee to USD which at this point of writing is $9.92
To minimize fees one would have to invest at least $9920
So this would be ideal for the Lump Sum Approach
 
Invest $10K at one shot, for a $10 transaction fee and $12 custody fee
So a total annual fee of $22 if you Lump Sum annually
 
But I know that in uncertain markets, people tend to want to DCA.
 
It's not practical to list out all combinations so heres the formula for you to DYI
[(Min fee 8 GBP) X (no. of investments per year)] * (GBP to USD Xchange rate)
E.G To DCA quarterly (not including custody fee of $12)
(8 GBP X 4) * (1.24) = $39.70
To DCA monthly (not including custody fee of $12)
(8 GBp X 12) * (1.24) = $119.10
 
One detail to keep in mind, the custody fee is tied to the value of your portfolio, so it will go from $12 to $24 to $36 as your portfolio increases in 10K of value yearly
 
Standard Charted
Full disclosure, this is the one I am most uncertain about as I could not find a demo trading platform for SC, if there are any corrections please let me know
Standard Charted lists a fee structure of a minimun of $10 with a 0.25% brokerage fee
You may see something regarding a 1% stamp duty ("Stamp Duty of 1.00% (Buy trades; IE ISIN shares only)")
But that does not apply as per u/rahssell and u/rainbow1112  
So to minimize fees (100/0.25 X $10) one need to invest at least $4000
 
So we can break our $10K into 2X$5K sums or one lump sum of $10K, either way the fees are same
 
.25/100 X $10000 = $25
 
However, SC charges 7% GST, which makes it $26.75
So $26.75 if Lump Sum Annually
If they were to DCA quarterly
$10.70 X 4 = $43.80 [Minimum fee of $10 with 7% GST]
To DCA monthly
$10.70 X 12= $128.40 [Minimum fee of $10 with 7% GST]
 
So annual fees for the brokers
IB - $36-$120 (LS/DCA)
Saxo - $22 (LS) -$119.10 (DCA)
SC - $26.75 (LS)/ $128.50 (DCA)
 
But the math doesnt end here, as Saxo has a custody fee that isn't fixed, it's percentage based
To do this properly, from we need to calculate the fees from $0 to $100K over 10 years
 
IB
If you start at 26 or above
$120 X 10 = $1200 total fees to reach $100K
But this fee decreases if you're under 26
Let every year under 26 you are be "Z"
$1200 - ("Z" x $84)
 
The $84 is the difference in normal fees ($120) and the reduced fees for hose under 26 ($36)
 
E.g Best case scenaro you are 18
$1200 - (8 X 84) = $528
 
Saxo
With its 0.1% fee structure the brokerage fee is straightforward
0.1/100 X $100000 = $100 (Brokerage fees)
The custody fees will be $540
Based on .12% on 10K on the first year with amount increasing by 10K each year
So $640 total if Lump Sum annually
 
Using previous calculations to account for DCA
If DCA quarterly
($39.70 X 10) + $540 = $937
If DCA monthly
($119.1 X 10) + $540 = $1731
 
Standard Charted
SC is straightforward if you Lump Sum annually or DCA Biannually
$26.75 X 10 = $267.5
If you DCA quarterly
$42.80 X 10 = $428
If you DCA monthly
$128.40 X 10 = $1284
 
So fees to reach $100K with each broker (not including exchange rate)
Broker Lump Sum Quar DCA Mntly DCA
IB 528-1200 528 - 1200 528 - 1200
Saxo 640 937 1731
SC 267.50 428 1284
 
Exchange Rates
 
Interactive Brokers
 
At our volume, IB charges a minimum of $2 per exchange for Interbank rates as pointed out by u/kalangkabok
 
So your exchange fees for a year can be as low as $2 if you exchange $10k in a Lump Sum or up to $24 if you decide to exchage monthly as you DCA
 
So over 10 years on our way ot reach $100K, this would cost between $20 to $240
 
Saxo
Saxo charges a fixed .75% (Under currency conversion fee) as pointed out by u/InvestingForTwo which is quite a lot
So on $100K, this adds up to $750
 
SC
So far I calculated SC exchange fee using their LiveFX service by my own estimates it is around 0.4% which is corroborated by u/kalangkabok calculating a 0.43% exchange rate
 
So 0.4% of $100K would be $400
 
TL;DR
Total fees to reach 100K with each broker
Broker Lump Sum Quar DCA Mntly DCA
IB 548-1240 548 - 1280 548 - 1440
Saxo 1390 1687 2481
SC 667.50 828 1684
The exchange fee for IB is dependent if you exchange annually, quarterly or monthly
Formula for IB
Let every year under 26 you are be "Z"
$1200 - ("Z" x $84) = Base fee
Add the amount corresponding amount based on how you plan on exchanging 10K yearly
LS Q Mthly
20 80 240
Edit: u/marcuskh shared a spreadsheet by cfleee from the ShinyThings threadon HWZ to estimate costs as well. Good for people to play with
submitted by csm133 to singaporefi [link] [comments]

My broker knocked $100k out of my account!

I NEED HELP: I THINK THE OPTIONS PLATFORM I’M USING IS SCREWING ME!!!
Hi there I’m gonna try to keep it as short as possible. So it all started 1 week ago, when my account value was $150k and cash value $300k(i do only bull credit spreads,so i receive the credit upfront). I 124 Tesla vertical spreads with different prices and expirations. I also had 5 Amazon vertical spreads. Then when Tesla started crashing i closed all my positions and also my Amazon positions. My account value went from $150k to $50k in 10 less than 30 seconds. I always close the short put leg first and then the long put leg second, so that i’m not naked and the system won’t close out all the positions in the account. I’ve been using this strategy with mostly Tesla and Amazon in the last month and grew my account from $45k to $150k in that space of time. Now I thought it was strange that the account went south so quickly because THE MAIN reason i do bull put spreads is that i know EXACTLY how much i will loose if the positions go against me and that value was NOT the value. But i left it because i still had enough money while i investigated further and maybe even take them to the regulators with a formal complaint! Then after closing those Tesla spreads i closed my 5 contracts AMZN vertical spread, where the short put leg showed -$22k loss and the long put leg showed +$19k profit, so $3k loss which was ok, it was me doing damage control. As usual, i pressed close and then the confirmation menu pops up where it confirmed that my loss was $22k but when i pressed confirm the -$22k transformed into -$32k!! I still closed the other leg and the profit was still +$19k. So my loss went from -$3k to -$13K! So i took it up with the platform and they gave me some BS story about how the bid ask can fluctuate bla bla bla(yeah,sure,a few cents maybe in 1-2 second not not dozens of dollars). So i decided to REALLY take it to the regulators and finally take my account to another broker but to transfer funds to the US broker but that would take 5 working days and i wanted to make some money back with TSLA SP500 speculation and AMZN which should do well in earnings until after AMZN earnings. So my account,which in the meantime had become $20k because of bad Netflix surprise last week, i went YOLO on TSLA 1790-1780 24 July put spread and on some conservative AMZN 3200-3135 24/7 spread and 3300-3280 31/7 put spread but because i was making money on the TSLA spread and I didn’t wanna risk a negative surprise like Netflix, i had -$72k on one leg and +$76k on the other,which was a $4 profit, so i closed the -$72k leg first because Tesla shares were going up strong today afternoon and wanted to close the short leg after a few minutes,which is the time the system usually takes to do a stopout. The think is that when i once again pressed close and the confirmation menu popped up, the -$72k became -$92k after i pressed confirm. This is like 1 second MAX!!!! I don’t know WTF just happened(AGAIN) and on what grounds can i fight these crooks! Now my account went to -$9k!!! DOES ANYONE KNOW IF I CAN GET A FORENSIC ANALYST OF SORTS TO ANALYZE WHAT HAPPENED AND IF THEIR SYSTEM BASICALLY SCREWED ME? I REALLY JUST WANNA THANK EVERYONE FOE THE SUPPORT AND FOR TRYING TO HELP. Thank you for all the answers,guys. I really appreciate it! God Bless!
Edit: My broker’s explanation is that yesterday there was only 41 contracts of TSLA 1780 put worldwide and i traded 35 of them so there wasn’t enough liquidity. They also said that the P/L that i see before i close the position is theoretical and that’s the BEST buyer’s price and because there was only 41 contracts traded at that time and 35 were mine they couldn’t get the best price but they got above my designated limit price. Does this make sense to you guys? And even if that WAS true,the limit price i set was the reference price when the -$72k P/L was showing on 1 leg and +$76k was showing on the other leg. Thy also say that the other leg was then executed at market price because my margin call went to the moon(which is INEVITABLE when you are forced to close one leg at a time anyway....DUH!!!) and the +$76k became +$66k. Hence i’m down $9k instead of up $25k! I asked them how come they don’t offer an option of closing bot legs at the same time and they said that Saxo Bank does offer them but to sophisticated clients....so the rest of us “unsophisticated” must get fucked?? Does their story make sense to anyone?
submitted by yddadrouysohw to options [link] [comments]

I don't know if I'm being stupid but what is the difference between a normal equity option and a CFD option?

Might be a silly question, but hear me out. I know CFDs are risky.
I also understand that if you own and equity option you own the underlying contract, whereas with a CFD option you dont and will just be paid/or pay the difference in price.
However, given the market turbulence could you theoretically buy some CFD Option puts and calls at far out strike prices with low bids.
Because regardless of if they come in the leverage isn't AS low as it would usually be?
submitted by Hayche to UKInvesting [link] [comments]

Are there semi-professional brokers that accept European customers

So, I've been searching forever for brokers that:
a) Allow non-UK European accounts
b) Have a platform that's suited to frequent trades with small margins and somewhat complex strategies (e.g. low-to-no commission on a per-trade basis other than the exchange fee, rich APIs + support for more order type than just sell/buy)
c) Have a wide range of instruments available (e.g. allowing for margins on SL order and/or dealing in CFDs, providing options, futures and having those available for stocks, bonds, ETFs, currencies and commodities traded on all major exchanges)
I'm sure these brokers exist for "real" customers that trade millions a day, in my case I have a sort of mid-volume strategy, where I trade e.g. ~20,000$ worht of volume each day (of course, depends on the day, could be between 0 and 50,000$ worth), so I don't have access to those kinds of brokers.
Up until now I've considered/tried:
Are there any other players on the market at the moment?
submitted by elcric_krej to stocks [link] [comments]

Are there semi-professional brokers that accept European customers

So, I've been searching forever for brokers that:
a) Allow non-UK European accounts
b) Have a platform that's suited to frequent trades with small margins and somewhat complex strategies (e.g. low-to-no commission on a per-trade basis other than the exchange fee, rich APIs + support for more order type than just sell/buy)
c) Have a wide range of instruments available (e.g. allowing for margins on SL order and/or dealing in CFDs, providing options, futures and having those available for stocks, bonds, ETFs, currencies and commodities traded on all major exchanges)
I'm sure these brokers exist for "real" customers that trade millions a day, in my case I have a sort of mid-volume strategy, where I trade e.g. ~20,000$ worht of volume each day (of course, depends on the day, could be between 0 and 50,000$ worth), so I don't have access to those kinds of brokers.
Up until now I've considered/tried:
Are there any other players on the market at the moment?
submitted by elcric_krej to Trading [link] [comments]

Are there semi-professional brokers that accept European customers

So, I've been searching forever for brokers that:
a) Allow non-UK European accounts
b) Have a platform that's suited to frequent trades with small margins and somewhat complex strategies (e.g. low-to-no commission on a per-trade basis other than the exchange fee, rich APIs + support for more order type than just sell/buy)
c) Have a wide range of instruments available (e.g. allowing for margins on SL order and/or dealing in CFDs, providing options, futures and having those available for stocks, bonds, ETFs, currencies and commodities traded on all major exchanges)
I'm sure these brokers exist for "real" customers that trade millions a day, in my case I have a sort of mid-volume strategy, where I trade e.g. ~20,000$ worht of volume each day (of course, depends on the day, could be between 0 and 50,000$ worth), so I don't have access to those kinds of brokers.
Up until now I've considered/tried:
Are there any other players on the market at the moment?
submitted by elcric_krej to Daytrading [link] [comments]

Got margin called on a covered call and a put spread with net gain

I'm using Saxo Bank as my broker for options trading. It seems like a pretty shitty platform (although I can't compare since I'm new to this), but they were in the top three among European platforms on the comparison sites I looked through, and there didn't seem to be a lot to choose from anyway.
I've had a few support calls with them because I found it weird that my "initial margin" and available cash keep moving when I write a call option that's covered by a long position in the underlying (AMD in this case). Their response (after I eventually got through to someone who cared to say more than "computer says no") was as follows:
Dear Client, Please note that in case of writing option that system is calculating 2 margins. One margin is the additional margin ( The additional margin serves to cover overnight price changes in the underlying value when the option position cannot be closed because of limited trading hours). In your case this is covered by the instrument you own already. Second margin is the premium margin ( The premium margin ensures that the short option position can be closed at current market prices and equals the current Ask Price at which the option can be acquired during trading hours). Basically what this means is that you always need to have enough funds on the account equal to the option value in case you want to buy back the option. What you see on the platform is the difference between the option value and your available cash, informing you whether you have enough cash to close the position without incurring negative cash balance. Obviously if you do not want to close the position than this information is not relevant for you. This is how our platform is made. https://www.home.saxo/products/margin-information?tabactive=f4a376a3-b784-4ae6-b0ac-43c342913773 Check the Margin requirement section Thank you
Today it bit me in the ass when they margin called my Feb 14 short call on AMD at 50.5 (covered by 100 AMD stocks) along with a put spread on AMD for the same date (short at 49.0, long at 47.0) (covered by more than $200 cash).
Do all platforms work in this way? Is the covering of risk by cash/equity never reflected in their margin calculations?
submitted by alienbiceps to wallstreetbets [link] [comments]

Saxo Referral

SAXO Bank is reliable and is authorised and regulated by the Monetary Authority of Singapore (MAS)
You can also earn additional incentives up to 500$ by opening an account.
For those who seeks help regarding the margin products trading, feel free to PM me.

submitted by Fakerchan to singaporefi [link] [comments]

Trying to get referral $ on Saxo

Hi guys,
I'm wondering if anyone knows of the most cost effective way to make the three margin trades necessary to get the referral $$ from Saxo Capital?
submitted by maisonping to singaporefi [link] [comments]

What will it take for equities to reflect reality?

Saxo Bank
submitted by wumzao to econmonitor [link] [comments]

Saxo Referral Plan

Current term of promotion 01 March - 01 June 2020 SAXO Bank is a private Danish Bank in Singapore which offers private banking services and is a brokerage firm.
Instructions :- Min funding of 3000 Execute 3 trade on margin products. No withdrawal for a month We will split the referral incentives.
SAXO Bank is reliable and is authorised and regulated by the Monetary Authority of Singapore (MAS)
Feel free to PM me for more info!
submitted by Fakerchan to singaporefi [link] [comments]

Online broker recommendation for LEAP Options.

Can anyone recommend me an online broker where I can trade LEAP Options?
submitted by samsam0000 to UKPersonalFinance [link] [comments]

Swiss Franc fallout at Saxo Bank - Investors who played with fire got burnt badly

Check out the thread about it here: http://www.forexfactory.com/showthread.php?t=521848&page=7
I was buying short tearm options through SAXO bank trade floor. Initaly I was working with 20 000 USD, last morning 12:00 I fell to 16000 usd and I couldnt withdraw it from the account. After that they recalculated my loss and said that I am -400 000 usd, and a bit later -560 000 USD, and that I haver to cover that Loss in the next couple of months ???????!!!!!
and another one here
I am in the same case. My account is showing a 6 digits negative number. Do you know what to do ? I am student and i dont have the funds necessary to make up for that loss. Do you think you can contest it ?
And yet another one
I am a retail trader with SAXO Bank and they too also have asked me to pay a 6 figure sum to them due to negative balance. They originally close me out around 1.15 taking all my margin.. then they called me the next day saying they adjusted the price and now I should pay a very very large sum.. I don't have this money and infarct i lose my life savings here..
Quite gory. Very interesting read. Maybe because of the schadenfreude. Maybe because you learn from other peoples mistakes.
submitted by alexanderkirkegaard to investing [link] [comments]

"Time To Pay The Piper" - Saxo Bank's 10 Outrageous Predictions For 2019

A world containing Donald Trump as the US president makes outrageousness a cheap commodity in the daily news cycle, but Saxo Bank didn't let that keep them from this year's Outrageous Predictions: their yearly task of conjuring unlikely – but not impossible – events that may just come to life in the new year.
Will this be the year when Germany enters recession, Apple “secures funding” for Tesla, Trump tells Powell “you’re fired” and Labour sweeps to a resounding victory and names Jeremy Corbyn as prime minister sending GBPUSD to parity?
As Valuewalk's Jacob Wolinsky notes, Saxo Bank, the leading Fintech specialist focused on multi-asset trading and investment, has today released its 10 'Outrageous Predictions' for 2019. The predictions focus on a series of unlikely but underappreciated events which, if they were to occur, could send shockwaves across financial markets.

While these predictions do not constitute Saxo’s official market forecasts for 2019, they represent a warning of a potential misallocation of risk among investors who typically see just a one percent likelihood to these events materialising.
The Outrageous Predictions for 2019 are:
  1. EU announces a debt jubilee
  2. Apple “secures funding” for Tesla at $520/share
  3. Trump tells Powell “you’re fired”
  4. Prime Minister Corbyn sends GBPUSD to parity
  5. Corporate credit crunch pushes Netflix into GE’s vortex
  6. Australian central bank launches QE on housing bust Down Under
  7. Germany enters recession
  8. X-Class solar flare creates chaos and inflicts $2 trillion of damage
  9. Global Transportation Tax (GTT) enacted as climate panic spreads
  10. IMF and World Bank announce intent to stop measuring GDP, focus instead on productivity
Commenting on the Outrageous Predictions, Chief Economist at Saxo Bank, Steen Jakobsen said:
“We have been publishing Outrageous Predictions for more than a decade and think this year’s list is both fascinating and shocking while encouraging investors to think outside the consensus box. It is important to underline that the Outrageous Predictions should not be considered Saxo’s official market outlook, it is instead the events and market moves deemed outliers with huge potential for upsetting consensus views.
This year’s edition has a unifying theme of “enough is enough”.
A world running on empty will have to wake up and start creating reforms, not because it wants to but because it has to.
The signs are everywhere. We think 2019 will mark a profound pivot away from this mentality as we are reaching the end of the road in piling on new debt and next year will see us all beginning to pay the piper for our errant ways.
The great credit cycle is already showing signs of strain in late 2018 and will rip through developed markets next year as central banks are sent back to the drawing board. After all, their money printing efforts since 2008 have only dug a deeper debt hole, and it has now grown beyond their mandate to manage.
“If some of these outrageous predictions see the light of day, we might finally see a healthy shift toward a less leveraged society, with less focus on short-term gains and growth, and a new focus on productivity and new economic revolution back toward globalisation with a fairer playing field after the immediate moment of crisis. On the negative side, we could see considerable worsening of central bank independence, a credit crunch, and big losses in the asset where everyone is too long: real estate.”
The Outrageous Predictions 2019 publication is available here and the full list of Saxo Bank’s Outrageous Predictions for 2019 reads:

1. EU announces a debt jubilee

In 2019, the unsustainable level of public debt, a populist revolt, rising interest rates from European Central Bank tapering/lower liquidity, and sluggish growth reopened the European debate on how to get ahead of a new crisis. Italian contagion sickens Europe’s banks as the EU lurches into recession. The ECB resorts to new TLTRO and forward guidance to limit the carnage, but it’s not enough and when contagion spreads to France, policymakers understand that the EU faces the abyss. Germany and the rest of core Europe, which refuses to let the Eurozone fall apart, have no other choice than to back monetisation. The Economic and Monetary Union extends a debt monetisation mandate to the ECB for all debt levels over 50% of GDP and guarantees the rest via a Eurobond scheme while moving the controversial Growth and Stability goalposts. A new fiscal rule allowing the first 3% of GDP in deficits to be mutualised in 2020 is adopted by EMU countries, with everything beyond subject to a periodic review by the European Commission linked to the state of the EU economy.

2. Apple “secures funding” for Tesla at $520/share

Apple realises that if it wants to deepen its reach into the lives of its user base, the next frontier is the automobile as cars become more digitally connected. After all, the late Steve Jobs showed that a company needs to bet big and bet wild to avoid complacency and irrelevance. Acknowledging that Tesla needs more financial power and Apple needs to expand its ecosystem to the car in a more profound way than that represented by the current Apple CarPlay software, Apple goes after Tesla. It secures funding for the deal at a 40% premium of $520 dollars a share – acquiring the company at $100/share more than Elon Musk’s errant “funding secured” tweet.

3. Trump tells Powell “you’re fired”

At the December 2018 Federal Open Market Committee meeting, Federal Reserve chair Jerome Powell signs on with a slim majority of voters in favour of a rate hike - one too many and the US economy and US equities promptly drop off a cliff in Q1 2019. By the summer, with equities in a deep funk and the US yield curve having moved to outright inversion, an incensed President Trump fires Powell and appoints Minnesota Fed President Neel Kashkari in his stead. The ambitious Kashkari was the most consistent Fed dove and critic of tightening US monetary policy. He is less resistant to the idea of the Fed serving at the government’s pleasure and is soon dubbed ‘The Great Enabler’, setting President Trump up for a successful run at a second term in 2020 by promising a $5 trillion credit line to buy Treasury Secretary Mnuchin’s new zero-coupon perpetual bonds to fund Trump’s “beautiful” new infrastructure projects and force nominal US GDP back on the path it lost after the Great Financial Crisis. Inflation reaches 6%, is reported at 3%, and the Fed policy is stuck at 1%. That’s deleveraging you can believe in via financial repression to the great detriment of savers.

4. Prime Minister Corbyn sends GBPUSD to parity

Labour sweeps to a resounding victory and names Jeremy Corbyn as prime minister on the promise of comprehensive progressive reform and a second referendum on a “to-be defined” Brexit deal. With a popular mandate and strong majority in Parliament, the Corbyn Labour government embarks on a mid-20th century-style socialist scorched earth campaign to even out the UK’s gross inequalities. New tax revenue streams are tapped into as Corbyn brings the UK’s first steeply progressive property tax into being to soak the wealthy and demands the Bank of England help finance a new “People’s quantitative easing”, or universal basic income. Utilities and the rail networks are re-nationalised and fiscal expansion sees deficits yawn wider to the tune of 5% of GDP. Inflation rises steeply, business investment languishes, and non-domiciled foreign residents run for cover, taking their vast wealth with them. Sterling is crushed on the double trouble of ugly twin deficits and lack of business investment on the still-unresolved Brexit issue. Cable goes from the 1.30 area where it spent most of the second half of 2018 and all the way down to parity at 1.00, a move of over 20% - with one dollar being equal to one pound for the first time ever.

5. Corporate credit crunch pushes Netflix into GE’s vortex

2019 proves the year of credit dominos toppling in the US corporate bond market. It starts with General Electric losing further credibility in credit markets, pushing the credit default price above 600 basis points as investors panic over GE’s $100 billion in liabilities rolling over in the coming years at the same time as the firm sees deteriorating cash flow generation. The carnage even spreads as far as Netflix where investors suddenly fret the firm’s fearsome leverage, with a net debt to EBIDTA after CAPEX ratio of 3.4 and over $10bn in debt on the balance sheet. Netflix’s funding costs double, slamming the brakes on content growth and gutting the share price. To make things worse, Disney’s 2019 entrance into the video streaming industry trims Netflix growth further still. The negative chain reaction in corporate bonds sets off massive uncertainty in high-yield bonds leading to a Black Tuesday for exchange-traded funds tracking the US high-yield bond market where ETF market makers are unable to set meaningful spreads, forcing a complete withdrawal from the market during a tumultuous trading session. The fallout in the ETF market becomes the first warning shot of passive investment vehicles and their negative impact on markets during turmoil.

6. Australian central bank launches QE on housing bust Down Under

In 2019, the curtains close on Australia’s property binge in a catastrophic shutdown driven most prominently by plummeting credit growth. In the aftermath of the Royal Commission, all that is left of the banks is a frozen lending business and an overleveraged, overvalued mortgage-backed property ledger and banks are forced to further tighten the screws on lending. Australia falls into recession for the first time in 27 years as the plunge in property prices destroys household wealth and consumer spending. The bust also contributes to a sharp decline in residential investment. GDP tumbles. The blowout in bad debt squeezes margins and craters profits. The banks’ exposure is too great for them to cover independently and bailout would be required from the RBA, perhaps recapitalising and securitising mortgages onto the RBA’s balance sheet.

7. Germany enters recession

A global leader for decades, Germany is struggling to upgrade its leveraging of modern technology. The crown jewel of the German economy, representing a cool 14% of GDP, is its car industry. The German car industry was supposed to be a growth juggernaut, registering 100 million sold cars in 2018. In the end, it only managed to unload 81 million cars, a mere 2% more than 2017 and well down from the 5-10% yearly growth rates from 2000s and forward. By 2040, 55% of all new global car sales and 33% of the stock will be EVs. But Germany is only just starting the transformation to EV and is years behind, and stiffer US tariffs won’t make things any better for German supply chains or exports. 2019 will be the peak of anti-globalisation sentiment and will create a laser-like focus on costs, domestic markets and production, and the further use of big data and reduced pollution footprint – the exact opposite of the trends that have benefitted Germany since the 1980s. As such, we see a recession arriving as early as Q3 2019.

8. X-Class solar flare creates chaos and inflicts $2 trillion of damage

All life on earth exists thanks to the stable bounty of energy hurled our way by the sun, but Sol is not always a serene and beneficent ball of burning hydrogen. As solar astronomers are well aware, the sun is also a seething cauldron of activity capable of producing incredible violence in the form of solar flares, the worst of which see the sun vomiting actual matter and radiation in the form of Coronal Mass Ejections, or CMEs. In 2019, as solar cycle 25 kicks into gear, the earth isn’t so lucky and a solar storm strikes the Western hemisphere, taking down most satellites on the wrong side of the earth at the time and unleashing untold chaos on GPS-reliant air and surface travel/logistics and electric power infrastructure. The bill? Around $2 trillion, which is actually some 20% less than the worst-case scenario estimated by a Lloyds-sponsored study on the potential financial risks from solar storms back in 2013.

9. Global Transportation Tax (GTT) enacted as climate panic spreads

The world suffers another year of wild weather with Europe again experiencing an extremely hot summer, setting off panic alarms in capitals around the world. With the international aviation and shipping industry enjoying substantial tax privileges, they become the targets of a new Global Transportation Tax (GTT) that introduces a global ticket tax on aviation and a capital “tonnage” tax on shipping with the price linked to carbon emission footprints. The new tax charge is set to $50/ton of CO2 emissions which is twice previous proposed levels and significantly above the 2018 average of €15/ton under the European Union’s Emissions Trading System. The new GTT pushes up air travel ticket prices and maritime freight, increasing the general price level as the new tax is passed on to consumers. The US and China have previously contested fuel taxes on aviation, citing the 1944 Chicago Convention on International Civil Aviation, but China changes its stance as a natural progression of its fight against pollution. This forces the US to reluctantly join forces in a global transportation tax on aviation and shipping. Stocks in the tourism, airline, and shipping industries plunge on increased uncertainty and lower growth.

10. IMF and World Bank announce intent to stop measuring GDP, focus instead on productivity

In a surprising move at the International Monetary Fund and World Bank spring meetings, chief economists Pinelopi Goldberg and Gita Gopinath announce their intent to stop measuring GDP. They argue that GDP has failed to capture the real impact of low-cost, technology-based services and has been unable to account for environmental issues, as attested by the gruesome effects from pollution on human health and the environment in India and elsewhere around the world. Productivity is certainly one of the most popular, and yet least understood, terms in economics. Simply defined, it refers to output per hour worked. In the real world, however, productivity is a much more complex notion. In fact, it can be considered as the greatest determinant of the standard of living over time. If a country is looking to improve people’s happiness and health, it needs to produce more per worker than it did in the past. This unprecedented decision by the IMF and the World Bank also symbolises the transition away from the central bank-dominated era that has been associated with the collapse in global productivity since the global financial crisis.
* * *
Full 'Outrageous Predictions' Outlook below:
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S&P Futures Slide, 10Y Yield Hits 3%, Oil Tumbles Under $50

After yesterday's furious Powell-inspired rally, the overnight kneejerk reaction has been muted, with US equity futures giving up some of yesterday's gains while Europe's Stoxx 600 Index faded earlier gains following a mostly upbeat Asia session.

After 10Y Treasuries surprisingly barely moved following yesterday's Powell speech, the benchmark yield finally saw a more pronounced move on Thursday morning, extending its decline after the Fed Chairman fueled speculation the central bank may pause interest rate increases next year...

... while the greenback drifted in a tight range following Wednesday’s drop, it rebounded from session lows and was roughly unchanged.

In the wake of Powell’s “dovish” comments that Fed Funds are “just below” estimates of the neutral rate (vs. “a long way” in October), hinting at a potential slowdown in the hiking cycle, the DXY gave up the 97.000 level and witnessed its steepest one-day percentage decline this month so far, to 96.622 at one stage. However, the USD has pared some losses with month-end and SOMA demand still in play, while some rival currencies also suffer further weakness. Looking ahead, FOMC Minutes are due to be published later today although with the market now pricing in just one rate hike in 2019 (from more than less than two months ago), it is unlikely that any further dovish news is possible.

At the same time, European bonds rose, and even though demand for five-year Italian debt at an auction fell to the lowest since June. Italy’s five-year bond yield dipped 4 bps to 2.36 percent and the closely-watched spread over Germany was at 294 bps. Italian debt has rallied this week as the government said it was ready to compromise with the European Union on its budget deficit target. German bonds extended gains after inflation data from the German state of Saxony and Treasury.
European shares gave up early gains of as much as 0.7%, with the Stoxx 600 Europe Index trading up just 0.2% as of 1:02pm CET, dragged lower by the real estate shares which remains the worst performer sector in the index, while tech shares trim gains of as much as 2%. Deutsche Bank dropped more than 3% after prosecutors said its headquarters were being searched in a money laundering probe.

Material names are also seeing support this morning, in-fitting with price action in the metals scope with gains seen in Antofagasta (+4.9%), Glencore (+1.8%), Rio Tinto (+1.1%); upside in mining names and a softer GBP has pushed the FTSE 100 (+0.8%) towards the top of the leaderboard.
Earlier in the session Asian stocks were broadly higher, with MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.6 percent, although the Shanghai Composite Index dropped 1 percent. Gains were tempered by investor jitters before trade talks between U.S. President Donald Trump and Chinese President Xi Jinping on Saturday, during the G20 summit in Argentina.
The euro erased an earlier advance after a raft of weak economic data, while emerging-market equities rose to the highest level since early October and developing-nation currencies strengthened. The dollar held steady even as the U.S. 10-year note yield fell below 3% for the first time in two months. The euro failed to sustain early gains amid mixed regional German inflation prints, while the pound led losses in G-10 as PM Theresa May said the U.K. should be ready for no deal if Dec. 11 Parliament vote rejects her Brexit plan. Fed’s hike path stays in focus with several speeches by policy makers and minutes from latest meeting due Thursday.
With Powell now out of the way, the market is looking for any signals on trade from a meeting between the U.S. and Chinese presidents that will take place at the Group of 20 summit in Buenos Aires this weekend.
“The next catalyst will be the G-20 meeting between Trump and Xi; we believe risk assets will tactically trade in the green following a tariff cease-fire,” said Eleanor Creagh, a strategist at Saxo Capital Markets in Sydney. “A tradable risk bounce on a paper deal at G-20 will be unlikely to reverse sentiment structurally as the underlying U.S.-China relationship is still deteriorating.”
Elsewhere, West Texas oil tumbled below $50 a barrel for the first time in more than a year as Russia signaled little urgency to commit to supply cuts and traders fretted that OPEC won’t act decisively to clear a resurgent surplus in the global crude market while U.S. crude stockpiles continue to grow.
Oil futures tumbled as much as 1.8% in New York to $49.41 a barrel, the lowest since early October 2017. Brent for January settlement, which expires Friday, fell as much as 2.1% to $57.50 a barrel on London’s ICE Futures Europe exchange. The global benchmark traded at an $8.23 premium to WTI. The more-active February contract lost as much as 2.2 percent.

While Putin praised Saudi Crown Prince Mohammed Bin Salman and said Moscow is ready to cooperate further, he said crude around $60 a barrel is “balanced and fair” and well above the level needed to to keep his government’s budget in surplus. “Putin is fine with $60, but this time next week we will be well below that if there is no deal,” said Warren Patterson, commodity strategist at ING. “I think we are going to have to see the Saudis actively reduce flows to the U.S.”
As noted yesterday, US crude stockpiles rose by 3.58 million barrels last week in the longest run of gains since November 2015, according to the Energy information Administration. The build was higher than the 1-million-barrel gain predicted in a Bloomberg survey, overshadowing a surprise draw in gasoline inventories.
“Oil has moved into our bear case scenario,” Norbert Ruecker, head of macro and commodity research at Julius Baer Group told Bloomberg. “Today’s price levels imply that the petro-nations will maintain their output hikes or that the world economy is about to slow down significantly.”
Gold has rebounded from two-week lows, as the dollar fell following comments from Fed Chairman Powell saying that the policy rate is just below the estimated neutral range. China’s steel prices have dropped following a two day gain largely due to ample supply and lean demand in markets, with iron ore now rising following Monday’s sell off. Additionally, spot Palladium has hit a record high of USD 1186.30/oz.
In geopolitical news, US Secretary of State Pompeo said he is very hopeful for a new meeting with North Korean officials to discuss denuclearization, while there were separate reports that US requested that North Korea change its chief negotiator. The US Senate voted 63-37 to advance a bill that would end US participation in Saudi Arabia-backed war in Yemen which paves way for additional vote next week, although White House has previously noted it would veto the bill if passed. Russia are to construct a missile early-warning radar station in Crimea in 2019, according to Interfax.
Expected data include personal income and jobless claims. Dollar Tree, TD Bank, HP Inc., VMware, and Workday are among companies reporting earnings.
Market Snapshot
Top Overnight News
Asian stocks traded mostly positive after risk appetite was ignited by Fed Chair Powell’s dovish comments which spurred hopes the Fed may begin to slow down on its hiking cycle and helped US stocks notch their biggest daily gain since March. ASX 200 (+0.6%) and Nikkei 225 (+0.4%) were underpinned from the open but with gains capped amid lingering trade uncertainty and inconclusive capex data for Australia, as well as mixed Japanese retail sales and a decline in USD/JPY. Hang Seng (-0.8%) and Shanghai Comp. (-1.3%) both initially conformed to the positive tone but then stalled amid tariff threats with Chinese President Xi’s offer of an olive branch to the US somewhat falling on deaf ears, as USTR Lighthizer said China has yet to offer meaningful proposals and suggested that the US are seeking to match China’s tariffs on autos. Finally, 10yr JGBs were marginally higher as they nursed the prior day’s losses after having found support around the 151.00 level and although today’s mixed 2yr auction results failed to spur a reaction, prices continued to gain as the strength in the regional stock markets moderated.
Top Asian News - China Is Said to Plan Major Purge of $176 Billion Loan Market - HNA Is Said to Widen Sales Push, Marketing More Than 90 Assets - Singaporean Regulators Widen Noble Group Probe to Auditor EY - South Korea-Japan Spat Deepens Over Mitsubishi Forced Labor Case - China Bond Defaults Surpass 100 Billion Yuan for 1st Time
European equities (Eurostoxx 50 +0.3%) piggybacked on the optimism seen on Wall St and during the Asia-Pac session as perceived dovish rhetoric by Fed Chair Powell continues to guide markets. Initial reports via WiWo that European Commissioner Oettinger expected US auto tariffs before Christmas resulted in downside to European equities, especially German autos, though DAX (+0.2%) saw a rebound after these comments were denied by the European Commission. Sectors are mixed with IT names the outperformer following gains seen yesterday during US hours which has prompted upside in chip-makers such as Wirecard (+3.3%), STMicrolectronics (+2.5%) and Infineon (+2.2%). Material names are also seeing support this morning, in-fitting with price action in the metals scope with gains seen in Antofagasta (+4.9%), Glencore (+1.8%), Rio Tinto (+1.1%); upside in mining names and a softer GBP has pushed the FTSE 100 (+0.8%) towards the top of the leaderboard. To the downside, energy names lag their peers with WTI and Brent crude unable to halt recent declines. In terms of stock specifics, once again, Deutsche Bank (-3.3%) have found themselves in the centre of further controversy with their offices raided earlier this morning in a money laundering probe involving two members of staff. Elsewhere, Intu Properties’ (-35%) shares have slumped to a record low this morning after reports that a consortium led by their Deputy Chairman has abandoned their plans to buy the Co.
Top European News
In FX, in the wake of Powell’s “dovish” comments that Fed Funds are “just below” estimates of the neutral rate (vs. “a long way” in October), hinting at a potential slowdown in the hiking cycle, the DXY gave up the 97.000 level and witnessed its steepest one-day percentage decline this month so far, to 96.622 at one stage. However, the USD has pared some losses with month-end and SOMA demand still in play, while some rival currencies also suffer further weakness. Looking aheadd, FOMC Minutes are due to be published later today. GBP,EUR – Major G10 underperformer with ongoing Brexit bickering and meaningful vote concerns driving Cable below 1.2800 with a low print of 1.2759 (vs. highs of 1.2850, with offers seen between 1.2855-65) , while Sterling also fell victim to cross positioning for month end as EUGBP climbed above the key psychological 0.8900 level, before the single currency came under renewed pressure on latest auto tariff headlines as press reported that EU Commissioner Oettinger expects US auto tariffs before Christmas. This pushed EUUSD to fresh session lows of 1.1350 and bringing into play options around 1.1340-50 (3.2bln) and 1.1360-65 (1.35bln). Note, the EUR did not really react to mixed German state CPIs but did respect a key fib just ahead of 1.1400 (1.1394). Looking ahead German national CPIs are due at 13.00GMT. AUD – In contrast the AUD has showed some resilience despite lower than expected capital expenditures with the antipodean staying afloat above 0.7300. JPY – The major beneficiary of the post-Powell Dollar weakness as USD/JPY fell through 114.00, 113.50 and currently rests around 113.40. In terms of technicals, the next level to the downside is at 113.17 (tenkan line), looking ahead, Tokyo CPIs are due to be released later today. TRY – The clear EM outperformer with the currency breaching 5.1500 (and temporarily rallying through a key fib at 5.1562) vs. the buck as the move was exacerbated by the drop below 5.2000 in the wake of a significan improvement in Turkish economic confidence index and falling oil prices (as Turkey is a large net importer).
In commodities, Brent (-1.3%) and WTI (-1.0%) have moved lower recently, which may have been exacerbated by reports that 7k WTI contracts were dropped at the same time. Overnight oil prices had moved higher, despite a greater than expected build shown in EIA weekly crude stocks of 3.577mln vs. Exp. 0.769mln, with prices boosted by a stronger dollar in addition markets are looking optimistically to this weeks G20 meeting to improve global demand. Gold has rebounded from two-week lows, as the dollar fell following comments from Fed Chairman Powell saying that the policy rate is just below the estimated neutral range. China’s steel prices have dropped following a two day gain largely due to ample supply and lean demand in markets, with iron ore now rising following Monday’s sell off. Additionally, spot Palladium has hit a record high of USD 1186.30/oz.
US Event Calendar

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Case study on risk management: The Saxo Bank crisis 2015

http://www.garp.org/risk-news-and-re...?newsId=129462
Fellow GARPs, this Saxo Bank crisis should be well documented as a case study.
From risk management prospective, Saxo Bank committed a big mistake.
  1. In its FX business, Saxo Bank makes prices to clients on FX spot, forward and options. That means Saxo Bank is having a principal-to-principal relationship with clients. On their trading platform, the prices are all tradable, and it forms an "offer". Once the trade is executed on the trading platform, via clients' action, or orders triggered, that constitutes an "acceptance". With "offer" and "acceptance", that is a contract sealed. For whatever reason that one side manipulate the details of the transaction (here it is price), it is a breach of contract. The new price of the contract has no legal power to be enforced because the content is not mutually agreed.
  2. In its letter explaining the methodology of the “re-pricing”, Saxo Bank is confusing itself as an agent. In this business, Saxo Bank is actually the sole market maker from clients’ perspective. There are no other markets. If Saxo Bank explains its methodology with reference to EBS, the client agreements have to be re-written that Saxo Bannk acts as an agent and all trade flows (spot and forward) goes to EBS (and Saxo Bank bears no responsibility on the fills), and each and every trade confirmation with EBS has to be sent to clients. However, it still cannot solve Saxo Bank’s problems in options because it cannot find a sizable marketplace for options similar to EBS.
  3. The key problem of Saxo Bank is its risk control on pricing. As a market maker, Saxo Bank has full discretion to quote a price on its trading platform. The bid price it quote to clients is the price Saxo Bank willing to buy from clients, and the ask price it quote to clients is the price Saxo Bank willing to sell to clients. Therefore, always, Saxo Bank should display a price that it is willing to do buy and sell (for this part the Trading department takes the blame, then the Risk Management department). It cannot first quote clients a price and then twelve hours later tell clients that, sorry, we are going to change your transacted price to another price blah blah blah.
  4. Another highlight of the incidence, from a risk management perspective, is how Saxo Bank manages its FX exposure. If clients are selling CHF, to avoid depreciation of the CHF, Saxo Bank should have shorted a certain amount of CHF with its own trading counterparties. Did Saxo Bank get out of its hedge positions before it cut clients’ margin positions? Would it be possible that Saxo Bank got hit by betting bigger than clients and then transferred the losses to clients by manipulating clients’ positions?
submitted by adaadaadaada to investing [link] [comments]

Noob question: why do I need a margin/pay premium to buy a long call?

Trying to learn some basics, but really confused here - I'm playing around demo account of my broker (Saxo). What I see is that when I'm trying to buy a call option:
When I'm closing the position, my account balance is increased roughly by a contract premium minus fees & commission. Position details http://tinypic.com/2i6z5md/9
Maybe I'm missing an elephant here, but why do I need to use margin/pay premium to buy a call? I'm not writing a naked option, why do broker asks for a margin?
Shouldn't my account balance be decreased only by a contract price + fees/commission?
submitted by JonnyWicked to options [link] [comments]

How to Place your First Trades on SaxoTrader How to Use Saxo Trader - YouTube Account Details & Margin - SaxoTrader Quick Start - Part 4 SaxoTrader Quick Start 3: Enter, Modify and Exit a Trade ... Cara Main Saham Luar Negara

Saxo Bank A/S is a fully licensed and regulated Danish bank with an online trading platform that empowers you to invest across global financial markets. By using our website you agree to our use of cookies in accordance with our cookie policy . Saxo Markets allows a percentage of the investment in certain Stocks and ETFs to be used as collateral for margin trading activities. The collateral value of a stock or ETF position depends on the rating of the individual stocks or ETFs – please see conversion table below. The KIDs can be accessed here or within the trading platform. Please note that the full prospectus can be obtained free of charge from Saxo Bank (Switzerland) ltd. or the issuer. This website can be accessed worldwide however the information on the website is related to Saxo Bank (Switzerland) Ltd. This means margin trading is required, which allows a multiple of the original deposit to be traded. In the case of Saxo Capital Markets, the leverage rate is as follows: For Saxo retail clients: 30:1 for forex trading and 20:1 for CFDs trading. For Saxo professional clients: 66:1 for forex trading and 40:1 for CFDs trading. Saxo Markets is the institutional division of Saxo Bank Group, a leading Fintech specialist focused on multi-asset trading and investment and delivering ‘Banking-as-a-Service’ to wholesale

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How to Place your First Trades on SaxoTrader

This tutorial explains how to fund your Saxo Bank account easily with a credit or debit card, right from the SaxoTrader trading platform.Transcript:Account f... FX data feed: eSignal vs FXCM vs FOREXTrader (Forex.com) vs Saxo Trader vs JForex 2 (Dukascopy) - Duration: 9:26. Alen Rissling 7,714 views Explore the Account section of the SaxoTrader trading platform to view the account summary, open positions,financial statements and trading conditions for Forex, stocks and other products. Learn how to enter Forex and CFD trades with the SaxoTrader trading platform, modify orders, place related Limit and Stop orders and close your positions.Tra... Saxo Market's Futures and listed options product manager Georgio Stoev assists student assistant Marius Røsand in trading Apple stock with an option trade on the SaxotraderGo platform.

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