Margin Trading

Leverage Available Margin Requirements

With Saxo Bank it is possible to leverage FX positions up to 100 times equal to 1pct margin required 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.

Example 1:

You have deposited 10,000 EUR on your trading account with Saxo Bank. 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:

2,500 EUR (250,000 EUR * 1.10 = 275,000 USD) or (275,000 USD * 1pct = 2,750 USD / EUR @ 1.10)

Example 2:

You have deposited 250,000 EUR on your trading account with Saxo Bank. You sell 10M 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 (1pct * 3M USD + 2pct * 2M USD + 5M USD * 3 pct) or (30,000 USD + 40,000 USD + 150,000 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 Bank reserves the right to increase margin requirements for large position sizes, including client portfolios considered to be of high risk.

Margin Calls

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 Bank may close your margin positions on your behalf.

Risk Warning

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.

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.

Danish 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. 

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