Multi-asset investment specialist Saxo Bank, in partnership with Euronext and Susquehanna, has launched a new offering that significantly enhances the trading landscape: 0DTE (Zero Days To Expiry) on the French CAC 40 stock index.
This development opens up new possibilities for investors interested in capitalizing on stock market volatility within the same trading day. With this addition, Saxo expands the range of trading strategies available to its clients, underscoring its commitment to providing sophisticated financial instruments to a diverse trader base.
0DTE (Zero Days To Expiry) options are financial instruments that expire on the same trading day, offering a unique opportunity for investors to take advantage of short-term market movements. Here are the main advantages:
Flexibility and Accuracy: 0DTE options allow investors to quickly respond to intraday volatility, offering unparalleled control over their trading strategies.
- Economics: With lower premiums than long-term options, 0DTE options allow diversified strategies without significant investment, making them accessible to a wide range of traders.
- Risk Management: They provide an effective tool for mitigating day-to-day market risks, ideal for hedging against specific events that may affect the CAC 40 index.
- Profit Opportunities: These options are ideal for taking advantage of market liquidity and volatility, especially during major economic or geopolitical events.
- Wide accessibility: Saxo’s introduction of 0DTE options on the CAC 40 index opens up complex trading strategies to traders of all experience levels, democratizing access to innovative trading tools.
Essentially, the 0DTE options introduced by Saxo Bank on the CAC 40 index are a strategic, flexible and cost-effective tool for modern traders aiming for precision and efficiency in their trading activities.
Access to CAC 40 daily picks on Saxo platforms
- Open the SaxoTraderGo platform: Start by connecting your Saxo account as you normally would.
- Search for CAC 40 Index: Use the search bar at the top of the platform as shown in the screenshot and type “CAC 40”. The search bar is identified by a magnifying glass icon and is located near the top of the screen.
- Check the search results: After entering “CAC 40”, the platform will display a list of related products and instruments. You will see various listings in the “Product Overview” section, which includes indices, futures and options related to the CAC 40.
- Select Daily Options: Look for entries labeled “CAC 40 Index Daily”. These are the daily options that interest you. They are usually listed with the day’s date for clarity, such as “CAC 40 Index Daily (29)” for options expiring on the 29th.
- Select an option to trade: Click on the specific daily option you wish to trade. For example, if you want to trade the option that expires on the 28th, select “CAC 40 Index Daily (28)” from the list.
- Look at the details of the option: By choosing a day option, you will be able to see the expiry time, which is critical for 0DTE options. Make sure the expiration time matches your trading strategy and desired time frame.
- Start Trade: Once you have identified the correct daily option, click on it to access the options chain. In the options chain, you can either click directly on a specific bid or ask price to open an order ticket for a simple trade, or right-click to select an options strategy if you want to place a more complex combination order. The option chain provides a detailed view of all available strike prices and their corresponding bid and ask prices, allowing you to make informed decisions and trade efficiently.
Remember that the availability of daily options and their details may vary each trading day, so it is essential to verify the expiry date and time for the options you are interested in trading.