Rakuten Securities Australia to add more products to offering
Online trading company Rakuten Securities Australia plans to expand its offering of trading instruments. In a notice on its website, the broker announces that there will be a product launch at the end of June.
Effective, June 29, 2021, the following products will be available to trade:
- UK Crude Oil
- US Crude Oil
- UK Crude Oil +$100
- US Crude Oil +$100
- SPA35 (Spain 35)
US Crude Oil+$100 and UK Crude Oil+$100 track the movement of WTI and Brent and offset their price, remaining as live products even in the case that it drops below 0. These products are rebased at $100. This means, should spot price fall into negative territory, for example -$5 USD, the pricing will reflect this at $95.
Rakuten also says that BTC/USD (Bitcoin/USD) is “coming soon”.
Let’s note that Rakuten Securities has recently implemented new margin requirements for CFDs, in line with rules introduced by the Australian Securities and Investments Commission (ASIC).
Under the new rules, the restrictions on CFD leverage are:
- 30:1 for a major currency pairs
- 20:1 for minor currency pairs, gold or a major stock market index
- 10:1 for commodities (other than gold) or a minor stock market index
- 2:1 for crypto-assets
- 5:1 for shares or other assets
The new Margin Close-out Protection rule means that margin close out levels will be set at 50% of equity. There is also a Negative Balance Protection, as well as restrictions on inducements for retail traders of CFDs.