Forex Margins (Clients, who are not EU Resident Retail Investors)
FX is a leveraged product, meaning that it provides a trader with the ability to control large amounts of capital using very little money; the higher the leverage, the higher the level of risk.
Margin requirements differ by currency pair 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 Bank offer tiered margin methodology as a mechanism to manage political and economic events that may lead to the market becoming volatile and changing rapidly.
For further explanation of the above methodology please click here.
A complete list of margin requirements by currency pair can be viewed under Margin & Trading Requirements as well as in the SaxoTrader platforms, under Trading Conditions.
Margin requirements may be changed without prior notice. Saxo Bank reserves the right to increase margin requirements for large position sizes, including client portfolios considered to be of high risk.
If at any time whilst an FX position is open, the margin required to maintain that position exceeds the funds available on account, you are at risk of a stop-out. You will be notified when a margin call occurs, and are required to reduce the size of open positions and/or deposit more funds (margin collateral) into the account. In the event that no action is taken Saxo may close some or all of the open positions in order to reduce exposure to an acceptable level.
Margin Trading carries a high level of risk to your capital with the possibility of losing more than your initial investment and may not be suitable for all investors.
Ensure you fully understand the risks involved and seek independent advice if necessary.
See our Risk Warning.
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 an automatic close out of your margin positions may be commenced, also cancelling any open orders on margin products.
Read more about Initial and Maintenance margin here.
A complete list of margin requirements by currency pair can be viewed here as well as in the SaxoTrader platforms, under Trading Conditions.