Forex Margin Trading
The value of your investments can go down as well as up.
Losses can exceed deposits on margin products. Please ensure you understand the risks.
With Saxo it is possible to leverage FX positions meaning a trader can open a position with a level of exposure above their deposits, based on margin requirements.
Margin levels are tiered based on USD notional amounts: a higher notional amount often means a higher margin rate will be in place. The tiered margin requirement is calculated per currency pair.
Saxo offers tiered margining as a mechanism to manage events that may lead to the market becoming volatile and changing rapidly.
For further explanation of the above methodology please click here.
The DEFAULT margin requirements by currency pair can be viewed under the Forex Rates page of this website. However, the “Account” tab in the SaxoTraderGO and “Trading Conditions” in other platforms should be referenced as the prevailing source of margin rates for your account as the website only reflects the default margin rates.
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.
You must maintain the required margin collateral as listed in the Account Summary on the trading platforms at all times.
If at any time while an FX position is open, and the margin required to maintain that position exceeds the funds available for margin trading on the account, you are in breach of your contract and need to meet the margin requirements again. This can be done by either:
- reducing the size of the open margin positions and / or
- providing more funds (margin collateral) to the trading account
When the required margin exceeds your margin collateral you are at risk of a stop-out where Saxo may close your margin positions on your behalf.
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.
Key Information Documents
All trading carries risk. To help you understanding the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more
Additional Key Information Documents are available in our trading platform.