​Margin Trading​

FX Tiered Margining Policy

With Saxo Capital Markets you are able to leverage your FX positions up to​ 100:1 (1% margin) on the notional value of the position.

Margin levels will be tiered based on USD notional amounts, the higher the notional amount potentially the higher the margin rate. The tiered margin requirement will be calculated per currency pair.

Example 1:

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:

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

Example 2:

You have deposited 250,000 EUR on your trading account with Saxo Capital Markets. 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 (1% * 3M USD + 2% * 2M USD + 5M USD * 3%) or (30,000 USD + 40,000 USD + 150,000 USD) = (220,000 USD / EUR @ 1.10).

For further explanation of the above methodology, please click here.​


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 Capital Markets 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.

The value of your investments can go down as well as up.
Losses can exceed deposits on margin products. Please ensure you understand the risks.

 
Saxo Capital Markets UK Limited is authorised and regulated by the Financial Conduct Authority, Firm Reference Number 551422. Registered address: 26th Floor, 40 Bank Street, Canary Wharf, London E14 5DA. Company number 7413871.

This website, including the information and materials contained in it, are not directed at, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in the United States, Belgium or any other jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation.