Saxo Bank Adds Futures Spread Trading for Mobile

The addition comes as Saxo's retail and institutional customers sought the ability to use a single order to roll over futures contracts before expiry to the next maturity date, with no legging risk or spread risk.

“A calendar spread is defined as the sale of one or more contracts and the purchase of one or more offsetting futures contracts in the same market but in a different month, e.g. Short September Corn and Long December Corn. The calendar spread trader positions himself between the speculator and the hedger, so rather than take risk of excessive price fluctuations, a calendar spread trader takes on the risk in the difference between two different trading months. These spreads have the benefit of being less volatile than other forms of straight futures trading," says Patrice Henault, futures and listed options product manager at Saxo Bank.