On 12th September 2016, Saxo will introduce a simplified equity rating model used to determine the:
- margin required for trading CFDs and stock options
The new simplified rating model rates equities into five categories from 1 (low-risk) to 5 (high-risk) stocks.
The margin requirements for CFD indices will be unaffected by this change.
For CFD stocks in category 1, you need to maintain only 10% of the market value of the position as collateral, allowing you to leverage up to 10 times. For CFD stocks in categories 4 you must maintain 80% of the position value. For CFD stocks in 5 you need to maintain the full value of the position as margin.
In addition to the simplification of the categories, from 12th September we will be monitoring and re-rating equities on a continuous daily basis. This means that we can adjust individual stock ratings based on current market events, moving them into more appropriate risk categories. This continuous risk rating is to protect you against over-leveraging positions in stock which have become more risky.
Current rating shown in the platforms
The current ratings for CFDs and stocks can be seen in the Trading Conditions in the trading platforms.
Standard Margin required for CFD stocks can be seen under
Account > Trading Conditions > CFD Stock/Index Instrument List (grouped under exchanges)
The Margin Requirement for CFD stocks can be found under Account > Trading Conditions > Search for stock or CFD