{{ "2016-11-29 10:21:27Z" | moment:{inputFormat: 'YYYY-MM-DD HH:mm:ssZ'} }}

adjustment-of-net-free-equity-margins-for-CFDs-dec-2016

Title: Adjustment of Net Free Equity (NFE) margins for CFDs
Page Content:

In September 2016, Saxo introduced a new simplified equity rating model, which rates equities from 1 (low risk) to 5 (high risk) and sets the margin required for trading CFDs.

Now, the Net Free Equity (NFE) margin required for the calculation of interest is also being updated to follow the same principles. At the same time, a simplification across all Expiring CFDs (Commodity CFDs, Forex CFDs, Bond CFDs and Expiring Index CFDs) is being introduced.

The following NFE margin rates will apply for Single Stock CFDs and Expiring CFDs as of 1 February 2017:

CFD SINGLE STOCKS/ETFs/ETCs
Product Rating NFE margin
CFD 1 10%
CFD 2 15%
CFD 3 20%
CFD 4 30%
CFD 5 40%
 
EXPIRING CFDs
Product Rating NFE margin
CFD 1 1.0%
CFD 2 1.5%
CFD 3 2.0%
CFD 4 3.0%
CFD 5 4.0%
CFD 6 5.0%
CFD 7 7.0%
CFD 8 8.0%
CFD 9 10.0%
CFD 10 12.0%

 

Please note that the new NFE margins for Single Stocks are lower than the Trading Margin, while those for Expiring CFDs are, in general, significantly reduced from the current margin levels.

You can find the current and coming margin levels for Net Free Equity on the Commissions, Charges and Margin Schedule section under 'Net Free Equity margin financing'.

The ratings for individual instruments can be found in the trading platforms:

  • SaxoTrader
    Account > Trading Conditions > Instrument Lists
  • SaxoTraderGO
    Account > Trading Conditions > Search for Instrument

To view the communication that Saxo has sent to its direct retail clients and IB end clients, please click here.