Saxo Bank Issues Warning about Ruble Volatility

Saxo Bank, a popular Danish investment bank specializing in online trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term and investment, has commented about challenges associated with Russia-related assets’ volatility.

Today, the investment bank published a notice to traders concerning Russia-related trading instruments, including Russian ruble pairs, such as USD/RUB and EUR/RUB. The lender noted that because of the heightened tensions between Russia and Ukraine, there could be sudden fluctuations in the price of such trading instruments.

Therefore, Saxo has disclosed that it may suspend transactions or introduce trading restrictions in such instruments due to a decline in liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term or changes in the surrounding situation. Additionally, the broker has advised traders to continue paying attention to the management’s position.

Saxo is not the only one observing the trend. Last month, the Japanese subsidiary of electronic trading major IG warned about possible changes to trading conditions for Russian ruble (RUB) pairs. In December last year, Dukascopy Bank, a Swiss online bank, cut the leverage on RUB pairs because of the increasing geopolitical tensions.

Giving Users Complete Financial Portfolios

The announcement by Saxo Bank echoes its vision to become a reliable, data driven, open banking financial institution.

In October last year, Saxo introduced crypto offerings as its brokerage platform was experiencing overwhelming demand for such investment products. The platform currently provides nine crypto-FX pairs and increased position limits. In addition, the broker offers more than 50 exchange-traded products (ETPs) tracking the performances of popular cryptocurrencies.

Last year, Saxo partnered with five other banks in what it termed as a way to help more customers access Saxo’s trading and investment solutions. The lender partnered with five Danish SDC member banks, including Jutlander Bank, Middelfart Sparekasse, Sparekassen Vendsyssel, Frøs Sparekasse and Sparekassen Thy. Such banks have 500,000 clients combined and currently, these customers are able to access Saxo’s services.

Firms using Saxo’s solutions are able to cut costs and complexity while providing their customers with an inclusive investment experience of wide access to stocks, bonds, mutual funds and ETFs. Such financial instruments help to build more individual experiences tailored to each client.

Last year, Saxo announced it is building a digital advisory tool that will give users a full and detailed overview of clients’ finance portfolios.