Margin information

Review our margin requirements and information for retail clients to trade with Saxo

For Wholesale Investor margin rates, please see here.

Initial margin and maintenance margin are designed to protect you against adverse market conditions, by creating a buffer between your trading capacity and margin close-out level.

Initial margin: a pre-trade margin check on order placement, i.e. on opening a new position there must be sufficient margin collateral available on account to meet the initial margin requirement for the entire margin portfolio.

Maintenance margin: a continuous margin check, i.e. the minimum amount of cash or approved margin collateral that must be maintained on account to hold an open position(s). Maintenance margin is used to calculate the margin utilisation, and a close-out will occur as soon as you do not meet the maintenance margin requirement.

Read more about Initial and Maintenance margin in Support Portal here.

See a full list of our FX margin rates for retail clients.

* Rates are standard retail FX margin rates, whereby the actual margin levels may vary dependent on client classification.

Margin requirements differ by currency pair and depend on the exposure in the currency pair. Margin requirements may be subject to regulatory mandated minimums and may be subject to change according to the underlying liquidity and volatility of the currency pair. For this reason, the most liquid currency pairs (the majors) in most cases require a lower margin requirement.

Saxo offers tiered margin methodology as a mechanism to manage political and economic events that may lead to the market becoming volatile and changing rapidly. With tiered margin, the average margin requirement (‘Blended Margin Requirement’) increases with the level of exposure. The opposite is also true; as the level of exposure decreases the margin requirement also decreases. This concept is illustrated below:

The different levels of exposure (or tiers) are defined as an absolute number of U.S. Dollars (USD) across all currency pairs. Each currency pair has a specific margin requirement in each tier.

Please note that margin requirements may be changed without prior notice. Saxo reserves the right to increase margin requirements for large position sizes, including client portfolios considered to be of high risk.

The negative balance protection applies to accounts that open a FX or CFD position on or after 9:00 AM AEDT, 17 March 2021. For any loss after any/all collateral on the open FX or CFD position, including cash deposits and unrealised profit/loss on Futures and Options, are protected against negative balance.

The margin ceiling is a restriction (or limit) on opening new exposure that would bring the total portfolio initial margin requirement above AUD 800,000 to prevent from opening new exposure but will be able to maintain the existing position (s) as long as margin utilization remains below 100%.

If the maintenance margin utilisation reaches or exceeds 100%, the margin positions in account will automatically be closed out , and any open orders on margin products will be automatically cancelled.

If you are holding both a long and short position in the same instrument that will not net at end-of-day, the margin will now be calculated on the largest leg. At the same time interest margin for FX forward trades will no longer be charged. Additionally, intraday margin on CFDs will no longer be available.

Detail retail margin rates will apply unless you have requested to reclassify as a Wholesale/Professional client.

Clients may be eligible to be reclassified as Wholesale client or Professional investor to enjoy the exclusive margin rates. To understand more, please see here.

Collateral rates for margin trading

Saxo Markets allows a percentage of the investment in certain Stocks and ETFs to be used as collateral for margin trading activities. The collateral value of a stock or ETF position depends on the rating of the individual stocks or ETFs – please see conversion table below.

Rating
1
2
3
4
5
6
Collateral value of position
75%
50%
50%
25%
0%
0%

Example: 75% of the value of a position in a Stock or ETF with Rating 1 can be used as collateral (instead of cash) to trade margin products such as Forex, CFDs, Futures and Options. Please note that Saxo Markets reserves the right to decrease or remove the use of Stock or ETF investment as collateral for large position sizes, or stock portfolios considered to be of very high risk.

For a complete list of available stocks, ratings and collateral values, please click here.

For a complete list of available ETFs, ratings and collateral values, please click here.

Saxo Markets allows a percentage of the investment in certain bonds to be used as collateral for margin trading activities.

The collateral value of a bond position depends on the rating of the individual bond, as outlined below:

Rating definition*Collateral percentage
Highest Rating (AAA)95%
Very High Quality (AA)90%
High Quality (A)80%

 

* as rated internally by Saxo

Example: 80% of the market value of a bond position with an A rating can be used as collateral (instead of cash) to trade margin products such as Forex, CFDs or Futures and Options.

Please note that Saxo reserves the right to decrease or remove the use of bond positions as collateral.

For further guidance or to request the rating and collateral treatment of a specific or potential bond position, please send an email to fixedincome@saxobank.com or contact your account executive.

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