Trading with Leverage

 

 

CFD Trading with Leverage

Trading With Leverage

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.

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 Bank reserves the right to increase margin requirements for large position sizes, including client portfolios considered to be of very high risk.

Rating groups

We have sorted our more than 8,000 online tradable CFDs in 8 different margin groups. Which margin group a CFD falls into depends on the market capitalisation, liquidity and volatility of the underlying asset.

The rating system for Stock Index Trackers and Single Stocks CFDs are as follows:

​RatingLeverageMargin requirementProduct / Instrument
1​​50:1*2%​Stock Index Trackers
220:1*5%Single Stock CFD / ETF CFD
310:110%Single Stock CF​D / ETF CFD​
46.67:115%Single Stock CFD / ETF CFD
54:125%Single Stock CFD / ETF CFD
62:150%Single Stock CFD / ETF CFD
71.33:175%Single Stock CFD / ETF CFD
80100%Single Stock CFD / ETF CFD

 

Single Stock CFDs

The leverage available on Single Stock CFDs begin at 20:1 which corresponds to only 5% margin.

RatingMargin requirement
​110%
220%
340%
480%
5100%

 

Commodity CFDs

The leverage for Commodities CFDs begins at 100:1 which corresponds to a margin requirement of only 1%. See the table below for full details.

​Instrument NameSymbol​Margin Requirement​Leverage
METALS
Gold​GOLD​4%2​5:1
Silver​SILVER​8%12.5:1
Platinum​PLATINUM​8%12.5:1
Palladium​PALLADIUM​8%12.5:1
US Copper​COPPERUS​4%25:1
ENERGY
US Crude​OILUS​5%20:1
UK Crude​OILUK​4%25:1
Heating Oil​HEATINGOIL​4%25:1
Gasoline US​GASOLINEUS​4%25:1
Gas OilGASOLINEUK​2%50:1
US Natural Gas​NATGAS​8%12.5:1
CO2 Emissions​EMISSIONS​8%12.5:1
AGRICULTURE
Corn​CORN​5%20:1
Wheat​WHEAT​5%20:1
Soybeans​SOYBEANS​5%20:1
SOFTS​
NY Sugar No. 11​SUGARNY​5%20:1
NY Coffee​COFFEE​5%20:1
NY Cocoa​COCOA​5%20:1
MEATS
Live Cattle​LIVECATTLE​5%20:1
FND= First Notice
LTD= Last trading
​ ​

Bond CFDs

The leverage available for Bond CFDs is up to 200:1, equal to just 0.5% in margin. This is much lower than what is required when trading the regular Futures Contract. See full detail in the table below.

​Leverage ​Margin Requirement ​Product/Instrument
​200:1* 0.5%​

​German Government 5 year Bobl
German Government 2 year Schatz

​100:1 ​1% ​German Government 10 year Bund
​100:1* ​1% French Government 10 year OAT
​50:1 ​2% ​Italian Government 10 year BTP
​*This leverage is available for the first EUR 50,000 of collateral (or equivalent). For collateral above this the required margin doubles. ​

Forex CFDs

The leverage available for Forex CFDs is 200:1 equal to just 0.5% in margin. This is a lot lower than the more than 3% currently required to open a similar Futures position.

​Instrument NameSymbol​Margin​ RequirementLeverage​
CURRENCIES​​​

Euro /
US Dollar

EURUSDEC2%50:1
Euro /
Japanese Yen​
EURJPYRY​4%25:1
Euro /
Swiss Franc​
EURCHFRF​10%​10:1
Euro /
British Pound​
EURGBPRP​2%​50:1​
British Pound /
US Dollar​
GBPUSDBP​2%​50:1
Australian Dollar /
US Dollar​
AUDUSDAD​4%​25:1​
USD Index​USDINDEX​2%50:1
FND= First Notice
LTD = Last trading

ETF / ETC CFDs

See under 'Single Stock CFDs'.

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.
Updated 1 August 2012
Free Demo