Collateral rates

Using bonds as collateral for margin trading

Saxo Capital 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) 92%
Very High Quality (AA) 90%
High Quality (A) 80%

 

* as rated internally by Saxo Group

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 Capital Markets 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 contact your Account Manager.

Bonds Risk Warning

Bonds are categorised as either green, yellow or red products depending on the individual instrument.


Saxo Capital Markets is required to categorise investment products offered to retail clients depending on the product’s complexity and risk as: green, yellow or red.

For most bonds, in particular corporate bonds, bid and offer prices are not public available and transparent, as the majority of trading takes place outside regulated marketplaces. Bonds are traded OTC with Saxo Capital Markets and OTC trading conditions apply. Please see Saxo Capital Markets' execution policy for further information.

Restrictions apply. Please refer to Information Access and Dealing Restrictions for ETFs and Bonds.

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