In our recent interview Claus Nielsen, Global Head of trading, hinted that Saxo would launch binary options soon. This didn’t take long and Saxo announced that they will be offering Binary Touch options in six currency pairs.
From my experience of talking to numerous traders, binary options strategies are easier than plain vanilla options to understand and execute. Saxo is offering binary options on six of the most liquid pairs. Since the potential losses and gains on a binary option are defined upfront, I can potentially see this product doing well during volatile times such as this week.
Here is their press release:
The Binary Touch options will initially be offered in six currency pairs; EURUSD, USDJPY, GBPUSD, EURJPY, EURGBP, and AUDUSD. They will be tradable from Saxo Bank’s award winning FX Options Board, where clients are already able to trade regular FX Vanilla Options.
The launch will further extend Saxo Bank’s FX offering and allow clients to trade in the world’s most liquid financial market in a simple and convenient way. A Binary Touch Option differs from a plain Vanilla Option in that the potential gains and losses of a Binary Touch Option position is known upfront, thus greatly simplifying the transaction. Clients may invest not only in which direction the price will move, but at the same time express their views on how far and over what time period.
Unlike other platforms that offer similar products, Saxo Bank will offer its clients the ability to close-out their long or short positions at the current market price prior to expiry.
Gustave Rieunier, Global Head of FX Options & Forward Trading at Saxo Bank, says:
“Adding Binary Touch Options trading to our platform bridges the gap between FX Spot and FX Vanilla Optionsand meets the recent demand in the market for wanting to trade in the global currency market in a simple, straight forward manner. Whether you are a seasoned FX trader or new to investing in currencies, this is an excellent way to add FX exposure to your portfolio.
Saxo Bank has also created a video on Binary Options trading that can be found here