How to trade bonds with Saxo Capital Markets.
1) Select a Bond
When buying or selling a Bond there are several parameters you might want to consider before deciding which Bond to buy and/or sell. In the box below is an example list of some of these parameters:
2) Contact Saxo Capital Markets UK
The trading execution process is initiated by contacting Saxo Capital Markets UK.
Saxo Capital Markets UK offers full coverage during European opening hours (CET 08:00 - 17:30) during which European liquidity is present for the majority of Bonds.
How to contact Saxo Capital Markets UK
Use Dealer Chat function on our trading platforms, asking for "Bonds",
or Call your Account Executive,
or E-mail: PrivateSalesUK@saxomarkets.com, stating your client ID and the details listed in the box below.
3) Order Execution
Saxo Capital Markets UK quotes bid/offer price on request. Client can accept the price or choose to have Saxo Capital Markets work an OTC order for a price target.
When the order is executed the position will be viewable in your Open Positions list. Prices shown are indicative, updated once a day and can deviate from actual firm trading prices.
Please refer to Saxo Capital Markets's
Best Execution Policy for more info.
4) Settlement of the trade
The executed order will be settled on the settlement date (typically 3 banking days after order execution).
The amount settled consists of 3 things:
Price - the amount per 100 nominal value you buy or sell at. This is also known as "clean price".*
Accrued interest - the interest that has accumulated on the Bond since last coupon date. If you buy a Bond you pay the accrued interest and if you sell a Bond you receive the accrued interest. See example of calculation in box below.
Commission - Saxo Capital Markets will charge a commission for executing the trade. For further info please refer to
*Another way to show the price is by taking the clean price and adding the accrued interest (calculated as the value per nominal 100). This is known as the "dirty price".
Example on Accrued Interest Calculation
Bond coupon 5% p.a. - paid annually on February 15
Settlement date of trade: August 15, 2014
Last coupon date: February 15, 2014
Days since last coupon (15. February - 15. August): 181
Day count convention: Actual/Actual (days in period/days in year)
Nominal value traded: EUR 100,000.00
Using Bonds as collateral
Saxo Capital Markets UK allows Bonds to be used as collateral for margin trading (with Forex, CFDs, Futures or Contract Options). The collateral value available for margin trading depends on the rating of the Bond, as outlined in the table.
Please visit our website for more information: