CFDs are traded on margin. This means that you are able to leverage your investment by opening positions of larger size than the funds you have to place as margin collateral.
The margin is the amount reserved on your trading account to cover any potential losses from an open CFD position. It is possible that a loss may exceed the required margin.
Margin requirements vary from instrument to instrument and can be changed at any time to reflect market conditions. For larger re-ratings or changing of margin requirements for very popular instruments clients will be notified in advance where possible.
Intraday margins are available on request on selected Index tracker CFDs (for example UK 100, France 40 and US 30 Wall Street). The intraday margin requirement allows you to trade on half the normal requirement for that market, and is applied during main trading hours.
It’s important to manage open positions in advance of market cut-off times to avoid utilization above 100% - which would trigger an automated liquidation of all positions. For more details on intraday margin please contact us.
Margin requirements by CFD type and instrument are always listed under the CFD Trading Conditions on the trading platforms but can also be seen below.
Please note that Saxo Capital Markets reserves the right to increase margin requirements for large position sizes, including client portfolios considered to be of very high risk.