Activating dormant holdings to generate cash without having to sell positions is growing as an attractive proposition with the development of new technology to enhance the trading potential of Australian investors, according to Saxo Capital Markets.
Multi-asset trading and investment firm, Saxo Capital Markets today announced an upgrade to functionality, which would see trading opportunities for sophisticated investors increase under a new move where existing long-term holdings would not require additional cash for collateral when trading margin products.
Saxo Capital Markets Australia chief executive, Ben Smoker, said the development would likely prove popular.
“This is an attractive proposition, given that some investors previously had to crystallise some capital gains to generate collateral for margin trading,” he said.
“With this incentive, investors have an alternative pathway with the additional benefit of also being more tax efficient.”
The enhanced functionality would be available to Saxo clients in Australia, and was aimed at investors with long-term holdings.
“Using physical stocks, bonds, and ETFs as collateral for CFDs and other margin trades allows investors to activate dormant holdings without having to sell positions in order to generate cash,” Smoker said.
“These enhancements are in line with the underlying trend of long-term Australian investors who are now using satellite active portfolios, which complement their longer term core positions.”
