Reduced CFD Margin Requirements

Saxo Bank now offers reduced collateral requirements on the Large Cap single-stock CFDs and all Index-tracking CFDs.

Available on the first EUR 300,000 of trading accounts, clients can double their leverage when trading Category 1 and 2 CFDs, including index trackers.

This lowers the margin requirement for the applicable CFDs in Category 1 and 2 by half, meaning greater exposure on key single-stock CFDs and all index-tracking CFDs.

EQUITY RE-RATING FOR STOCKS AND CFDs FROM MONDAY 12TH DECEMBER

Please note that due to the current market conditions, Saxo Bank will increase the ratings of 700 Stocks and CFDs over the weekend 10th-11th December with effect from when the market opens on Monday, 12th December. Therefore:

• Less of the Stock’s value can be used as collateral for margin trading
• Trading the CFD will require more margin

Saxo Bank will also decrease the ratings of 145 Stocks and CFDs so that:

• More of a Stock’s value can be used as collateral for margin trading
• Trading the CFD will require less margin.

Detailed Explanation

Currently, Saxo Bank offers 20:1 leverage on Index-tracking CFDs, meaning if an investor buys, for instance, 50 DAX® Index-tracking CFDs at 6,300, then their collateral requirement will be approximately EUR 12,600 or 4%.

But, by taking advantage of reduced collateral requirements, an investor can buy 50 DAX® Index-tracking CFDs at 6,300, and their collateral requirement would be approximately EUR 6,300 or 2%.

NOTE THAT WITH REDUCED CFD MARGIN REQUIREMENTS, CLIENTS HAVE AN INCREASED EXPOSURE TO RISK.

More on margin rates

When trading Category 1 and 2 CFDs with Saxo Bank, margin requirements are halved on the first EUR 50,000 (or equivalent) collateral. This includes index-tracking CFDs. Tier 1 CFDs will therefore require a margin of 2% and Tier 2 CFDs will require a margin of 4% on the first EUR 50,000 of collateral. Normal margin rates will apply to all investment collateral over EUR 50,000 (or equivalent) and to CFDs rated as category 3 or higher. For a full list of applicable CFDs, refer to Category 1 and 2 CFDs on the CFD Trading Conditions page in the trading platform or on the website.

If you are not already a client with Saxo Bank, open an account today and take advantage of this offer.