Innovating in the financial trading arena

Innovating in the financial trading arena

Tuesday, May 23, 2017 Posted by Andy McCarron
Infinox's Peter Karsten discusses the launch of Range Spreads

Financial trading operator Infinox is aiming to make the sector more accessible to a wider market through the launch of its new CFD product.

The company has developed a new style CFD interface where users can draw a graph to mark the boundaries of any transaction, making it far more easy to choose and digest the terms of the CFD.

Called Range Spreads, users are asked to place a cube on a chart to show how they think the asset price will develop. If the price goes through the range, they make a return on their investment. Revenues or losses are calculated gradually depending on how long the price remain in or out of the cube.

Infinox commercial director Peter Karsten explained the genesis of the Range Spreads product to “When we developed our new CFD product, we decided to go right back to the start and looked at the specification of a CFD way back in the world of Bretton Woods. This helped us write a spec for a CFD using the philosophy that the interface should be graphical. This image-based way of trading has taken very well since we introduced it.”

Karsten explained that it has taken some time to introduce a new style of trading, not least because it made sense to have written legal opinions from more than one reputable legal firm before notifying the FCA and going live with this form of CFD. He also suggested that history indicates that bigger companies can find innovating quite tricky.

“This is an area for new entrants in the market, “ he said. “Incumbents tend to struggle with innovations but there’s scope for companies to come in and do something new.”

He said there is also a big risk involved in launching a different way of trading. “Innovation is always a big scary bet; it has been really difficult to launch a new product but we have done it. It’s taken us anything between one and two years. The amount of testing need to do is surprisingly large - customers are very clever and we need to make sure that our products can match this.”

Totally Gaming says: The financial trading sector has always run in parallel to the gambling industry, with convergence in the binary options products, but innovation is much harder to come by given the stricter financial regulations. Infinox’s willingness to invest and try something different stands the company out from the competition.


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