Saxo Bank Launches USDCNH OTC Options, Fortifying Existing CNH Offering

Versatile multi asset broker Saxo Bank, has announced the new launch of over-the-counter (OTC) options on its USDCNH platform, granting clients more exposure to Chinese Renminbi trading, according to a recent Saxo Bank company statement.

More Competitive CNH Opens Door To New Possibilities

The Danish broker is most well known for its extensive Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term offering, having recently reported sagging volumes this past March. With fresh expansive measures already taking place in Abu Dhabi, the new Renminbi offering looks to capture a growing market. The announcement comes at an interesting time indeed, given the dual waning of both the onshore and offshore Renminbi (CNY and CNH respectively), along with an augmented trading band of the CNY to 2%. As such, the greater competitiveness fostered by the Renminbi has certainly allowed more latitude by forex traders looking to begin trading the bourgeoning currency.

Presently, Saxo Bank's clients have access to a CNH spot offering against a suite of currencies. However this new move clearly presents a multitude of new forex strategies and overall potential. According to Elizabeth Missfeld, FX Product Manager at Saxo Bank in a statement on the new offering, “the USDCNH is our clients’ opportunity to benefit from actions in China. With the recent further band widening, China is implementing its plan to further internationalize the Yuan, and I am glad that our clients can now also take part in Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term trades in the Chinese offshore market.”