CFDs allow you to trade on price movements without ownership of the underlying. You can profit from falling as well as rising markets. Use CFDs both defensively – to hedge your positions – or more assertively to gain market leverage. Trade with up to 100:1 leverage and maximise your trading flexibility and opportunities.
CFDs are offered on a broad range of underlying assets including individual stocks, indices, commodities and more.
At Saxo, you can dive right in and trade CFDs from the same account you use for other trades and investments. Or learn more about their flexibility and other benefits in the Saxo Academy.
CFDs or, Contracts for difference, allow you to invest in the performance of a vast range of securities and asset classes such as shares, equity indices like the the S&P 500 and commodities such as gold – but without having to actually purchase or own the underlying asset.
Instead, you enter into an arrangement with Saxo to put up a relatively small sum - often around 10% - this is known as margin. It is designed to cover any day-to-day losses that arise, while Saxo effectively funds the remainder of your investment.
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While CFDs are more sophisticated than plain vanilla bonds or singe stocks, this doesn’t mean pricing can't be competitive, straightforward and transparent. This is combined with execution on a Direct Market Access (DMA) basis, where all orders are routed to regulated markets and other liquidity venues via smart order routing.
Saxo offers a broad range of CFDs, global reach and exposure to the most important markets, all via a single account and our trading platforms. Clients benefit from the liquidity of the underlying market in single stocks and ETFs.
CFDs are a fast-moving and leveraged investment instrument. To trade CFDs in the most efficient way, you need a platform that is available across all your devices. Allowing you to trade where and when you need to.
Get the same market exposure as traditional stock trading but on less capital. Trade with up to 100:1 leverage and maximise your trading flexibility and opportunities.
With Index-tracking CFDs, you can trade 29 stock indices like Germany 30, US500 and UK100 on real-time prices in one go. This gives you more cost-efficient market exposure than trading individual shares. Get up to 50X leverage (on as little as 2% margin requirement), very competitive Bid/Ask spreads and no additional commissions.
Trade APPLE, GOOGLE and 8,840 other single stocks on the world’s leading markets. With Single Stock CFDs, it’s possible to go short in a falling market, and since CFDs are traded on margin, you’re able to profit from even small market movements. The low margin requirements allow you to leverage up to 10X (on as little as 10% margin requirement).
You can also trade FX and Bonds as CFDs: all costs are built into the spread, there are no commissions, as little as 2% margin requirement and a minimum trade size of 5,000 notional value for FX or 50X the index for Bonds. Or trade 675 ETFs (Exchange Traded Funds) as CFDs to trade on margin and gain the ability to short sell it if you believe that price will fall.
It’s just as simple to trade commodities as any other CFD. Select from the most liquid commodity markets within energy, agriculture, metals, softs and emissions and get direct exposure to the underlying commodity with all the CFD benefits. No commission or trading fees, either. And with Saxo, you’re not constrained by pre-defined lot sizes. Want to trade 25 barrels of oil instead of the Futures minimum trade size of 1,000 barrels? No problem.
Saxo Bank clients will experience consistently low spreads when trading CFD Index Trackers during the main trading hours. For the most popular Index Trackers, the Bid/Ask spread will be equal to the minimum target spread in approx. 99% of the quote updates during the opening hours of the underlying cash market.*
Saxo Bank has introduced Intraday Margin on our most popular Index-tracking CFDs, lowering the margin requirements by 50%. That means you will have twice the trading capacity when trading CFD indices such as the UK 100, Germany 30 or US 500 during the index’s intraday session.
Access Single Stock CFDs with Saxo Bank are very transparent and benefit from significant underlying liquidity, given that the hedging is always executed on a pure Direct Market Access (DMA) basis, where all orders are routed to regulated markets and other liquidity venues via smart order routing.
Algorithmic Orders are especially useful for larger or more advanced single stock CFD orders. They used algorithmic equations to independently execute order transactions most efficiently, according to the client’s chosen strategy. They can also break down an order into smaller parts to avoid showing the full size of the order.
When trading CFDs you can use a percentage of your Stocks, ETFs or Bonds value as margin collateral and increase your market exposure.
If you execute 100 trades or more per calendar month on Stocks, ETFs and Single Stock CFDs, you qualify for an Active Pricing Plan with competitive rates.
They are a way of fine-tuning risk and return in your investments. Here you can learn the basics of CFDs, find out about their uses in a greater context, and what they can do to help you reach your goals.
Visit the Saxo Academy
CFDs allow you to trade on whatever direction you think the market might go.
PlayWhat happens when you use a CFD to buy a stock?
PlayCFDs can be bought and sold - without owning the underlying asset. We explain how this works and how it might fit your strategy.
PlayDanish banks are required to categorise investment products offered to retail clients depending on the product’s complexity and risk as: green, yellow or red. For further information click here.
Saxo Bank A/S is licensed by the Danish Financial Services Authority and operates in the UAE under a representative office license issued by the Central bank of the UAE.