One of the biggest challenges for option traders - especially active - is tracking portfolio risk as underlying prices fluctuate. For traders using the SaxoTraderPro platform, that has now been made a lot easier, as Saxo introduces a so-called option risk ladder feature.

The option risk ladder calculates the present value change as well as Delta, Gamma, Vega and Theta (commonly referred to as “Greeks”) for a range of spot values. These calculations make it possible for traders to get a quick overview of their portfolio’s risk exposure relative to different values at manually set time ranges of the underlying spot.

The introduction of the option risk ladder, which is currently only released for the SaxoTraderPro platform, meaning for primarily professional traders, follows a strategy of having the market’s best possible offering for all clients who invest in options.

“As a leading global player, we’re seeing a clear and growing appetite for options trading. At Saxo, we’re committed to delivering the best possible trading experience for all client types. With the addition of the options risk ladder to our already comprehensive suite of professional-grade tools, we’re confident there’s no better platform than the SaxoTraderPro platform for active options traders. Early feedback from users has been overwhelmingly positive, reinforcing the value this brings to their trading strategies,” said Patrice Henault, Head of Platforms & Products experience at Saxo.

Part of a greater ecosystem

The introduction of the portfolio risk ladder follows a host of tools developed to make high-frequency option trading as efficient and swift as possible. This includes features like:

• Options chains with Greeks
• In-the-money probabilities
• Combo tickets for multi-leg options strategies
• Overview of net Greeks exposure
• Pre-trade analytics with:
  • probability envelope
  • 3D volatility chart
  • Volatility smiles
  • At-the-money forward curve.

The options tools are additions to Saxo’s cutting-edge platforms with access to over 71,000 global instruments, including FX, CFDs, options, and equities.