Sydney-based liquidity provider announced the launch of pairs CFDs trading on Tuesday.
The new product, which is already being used by at least one broker, allows a client to take a long position in one instrument and a short in another.
For example, a client could trade a Tesla / Ford pair, taking a long position in Tesla and short position in Ford.
“No one else in the world is currently offering what we have developed,” said 26 Degrees CEO Gavin White. “Our extremely talented team has built the technology whereby brokers can potentially offer their clients 100’s of new and unique Pairs, traded as a single position.
What is most exciting is how powerful these instruments can be around big news events like elections and earnings releases because of the heightened exposure they can provide. We believe this presents a significant opportunity for brokers to offer a bespoke suite of highly relevant Pairs
instruments to their clients and stand out from their competitors.”
The product, as its name suggests, is similar to the sorts of pair trades a long/short fund might use, with the idea being to generate enhanced returns by capturing the upside from both rising and falling prices
Clients also benefit from more efficient margin requirements because they only have to put the cash down to open one trade, as opposed to opening two positions simultaneously.
Pricing for pairs CFDs can be streamed via API from 26 Degrees’s trading servers in LD4, NY4, and TY3.