When short selling CFDs, you can experience forced closure of a position if your CFDs get recalled. The risk is particularly high if the stock becomes hard to borrow due to take overs, dividends, rights offerings (and other merger and acquisition activities) or increased hedge fund selling of the stock.
Dividends on CFD Positions
Holders of long CFD positions will, when dividends are paid on the underlying share, qualify for a proportional payout. Holders of short CFD positions will have to pay an amount equal to the full (gross) dividend paid on the underlying share.
All cash dividends for CFD positions are settled on pay date. Cash dividends are booked on ex-date to reflect the market price movement on the ex-date, but the actual value of the payment is settled on pay date.
Dividends on CFD positions are cash adjustments paid or debited by Saxo Bank and not by the underlying company. Dividends paid on CFDs are not eligible for any preferential withholding tax rates sometimes associated with dividends paid on physical stocks and may therefore differ from the dividends payable on the underlying share.
Each booking will be issued a reference number for the related positions. You can find each booking in the Activity Log in the Account Menu in SaxoTrader.
Partial Fills
Partial fills may occur on limit orders and the remaining amount stays in the market as a limit order and may be filled within the order duration.
Market orders can be filled at numerous levels, the price paid will be the volume weighted average price of all the fills.
Market Orders
Certain exchanges* do not support market orders. If you place a market order in these markets, Saxo bank will automatically translate the order to an aggressive limit order within a certain percentage limit "in the money"**. It is the clients own responsibility to check if the order is traded in the market after order entry. If you experience or suspect any errors with your order you should contact Saxo Bank immediately.
| *Exchange |
**Percentage Limit |
|
|
| Athens Stock Exchange (AT) |
2% |
| Oslo Stock Exchange (OSE) |
1.75% |
| OMX Copenhagen (CSE) |
2.50% |
| OMX Helsinki (HSE) |
2.50% |
| OMX Stockholm (SSE) |
2.50% |
Some of our execution brokers may choose to translate market orders on various markets into aggressive limit orders 3% in the money. This is due to their internal compliance and is set to protect clients from "bad Fills". Saxo bank will not be responsible for missing fills due to this.
US Stop & Market Orders
For US markets, Saxo Bank uses sweep algorithms to add liquidity from more venues than the primary exchange. This implies that orders can be filled before trading commences on the primary exchange.
CFD market orders placed after 09:30 ET will not be filled before the stock is crossed on the primary exchange.
CFD stop orders are triggered on the primary market price feed and follow the routing rules listed above for market orders. As some stops are handled manually delays can sometimes occur.
Nordic Markets
Orders traded in the Nordic markets (Denmark, Sweden and Norway) are split into an "Even lot" which will be traded, and a remainder which will be routed to the odd-lot book.
When part of an order is routed to the odd-lot book, limit orders will be filled if possible or left on the book until a fill is possible. A market order will be filled immediately if possible, and will otherwise be cancelled (fill or kill principle).
Warsaw Stock Exchange
Broker’s market orders may be submitted to the exchange only during the continuous trading phase, except when balancing occurs. For any such order to be accepted, at least one opposite limit order must be awaiting execution.
A broker’s market order shall be executed at the price of the best opposite buy or, as the case may be, sell order awaiting execution.
Where any market order is partly executed, the unexecuted portion shall become a limit order at the last price.
The commission and margin rates referred to above may vary from time to time especially for very active or inactive customers. Saxo Bank reserves the right to amend the commission rates, brokerage fees, margin rates and interest rates referred to according to the General Business Terms or Trading Agreement covering the client relationship between Saxo Bank and the Client.
Corporate actions
For more information on Corporate actions, please read Corporate Action Calculations.