Leverage Available Margin Requirements
With Saxo Capital Markets it is possible to leverage FX positions up to 50:1 (2% margin) on the notional value of the position. Margin levels are tiered based on USD notional amounts, the higher the notional amount potentially the higher the margin rate. The tiered margin requirement is calculated per currency pair.
You have deposited 10,000 EUR on your trading account with Saxo Capital Markets. You buy 250,000 EURUSD, as you expect EUR to increase in value against USD. The trade ticket on your trading platform will display the margin required for making the trade as:
5,000 EUR (250,000 EUR * 1.10 = 275,000 USD) then (275,000 USD * 2% = 5,500 USD / EUR @ 1.10)
You have deposited 250,000 EUR on your trading account with Saxo Capital Markets. You sell 9M USDCAD, as you expect CAD to increase in value against USD. The trade ticket on your trading platform will display the margin required for making the trade as:
200,000 EUR (2% * 5M USD + 4M USD * 3%) then (100,000 USD + 120,000 USD) = (220,000 USD / EUR @ 1.10).
The DEFAULT margin requirements by currency pair can be viewed under Margin & Trading Requirements under FOREX on the Products page of the website. However, under 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.
For further explanation of the above methodology please click here.
Margin requirements may be changed without prior notice. Saxo Capital Markets 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 Capital Markets may close ALL your margin positions on your behalf.
Trading risks are magnified by leverage – losses can exceed your deposits. Trade only after you have acknowledged and accepted the risks. You should carefully consider whether trading in leveraged products is appropriate for you based on your financial circumstances.
Margin and Trading requirements
Forex Risk Warning
Forex is categorised as a red product as it is considered an investment product with a high complexity and a high risk.
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. Please refer to our "Product Risk Categorisation".