Is Saxo a market maker?

When clients engage in trades involving OTC products, they are essentially entering into agreements with Saxo Bank as the counterparty. This arrangement underscores the bank's commitment to providing a comprehensive and seamless trading experience for its clients.

The Saxo Bank Group plays a pivotal role in the financial markets, particularly in areas where transactions are not conducted on a centralized exchange. In such instances, the group assumes the Mantle of a market maker, ensuring liquidity and facilitating trades.

This function is particularly significant for over-the-counter (OTC) products, such as foreign exchange and Contracts for Difference (CFDs). By offering a ready market for these instruments, Saxo Bank enables clients to execute their trading strategies efficiently.

The role of market maker extends beyond mere facilitation of trades. It also involves the bank taking on the risk associated with holding positions in these products, thereby contributing to market stability and depth.

By acting as a market maker, Saxo Bank is able to offer competitive pricing and tight spreads, which are crucial factors in determining the profitability of trades. This, in turn, enhances the attractiveness of its services and strengthens its position as a leading player in the financial markets.