Trading with Leverage

 

Trading with Leverage

(Trading on Margin)

Leverage available - margin requirements


With Saxo Capital Markets it is possible to leverage FX positions up to 100 times equal to 1% margin required on the notional value of the position.

Example:

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).

 

The DEFAULT margin requirements by currency pair can be viewed under Margin & Trading Requirements (Content TBD) 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 Capital Markets​ 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:
 
(I) reducing the size of the open margin positions and / or
 
(II) providing more funds (margin collateral) to the trading account
 
When the required margin exceeds your margin collateral, your account is at risk of a compulsory close out where Saxo Capital Markets may close ANY or ALL open Margined Positions and Orders. Please refer to the Commissions, Charges and Margins Schedule.
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Saxo Capital Markets South Africa is an authorized Financial Services Provider and regulated by the Financial Services Board, registration number 40983. Registered address: The Place, 1 Sandton Drive, Sandown, Johannesburg, South Africa.  

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