Saxo Capital Markets launched a new service to allow clients to post multiple listed assets as collateral for margin trades.
Under the new arrangement, clients can now use existing physical stocks, bonds and ETFs for trades including contracts for difference, foreign exchange, futures and options, rather adding extra cash for collateral.
Any of these assets available through Saxo's SaxoTraderGO platform - or transferred to a client's Saxo trading account - can receive a "collateral value" from 25% to 75% for stocks and ETFs; and bonds' collateral value is determined by investment grade.
"Using physical stocks, bonds, and ETFs as collateral for CFDs and other margin trades allows investors to activate dormant holdings without having to sell positions in order to generate cash," Saxo Australia chief executive Ben Smoker said.
"This is an attractive proposition, given that some investors previously had to crystallise some capital gains to generate collateral for margin trading.
"With this initiative, investors have an alternative pathway with the additional benefit of also being more tax efficient."