Net Free Equity is defined as:
- The cash balance on the main trading account
- Plus or minus the value of any unrealised profits or losses from open trade exposures in CFDs, Futures and short non-future style Contract Options on the main trading account
- Minus the value of Saxo Bank's margin requirements for open trade positions on all accounts.
Net Free Equity margin financing
Cash collateral for Net Free Equity margin financing may differ from the trading margin requirement. See the full list of cash collateral for margin financing used for Net Free Equity calculation under our General Business Terms, located here.
To avoid paying interest on your account you are required to hold sufficient cash collateral ensuring a positive Net Free Balance.
The trading margin requirement (leverage) described under each trading product is the minimum amount of collateral you must maintain on your account at all times. This collateral may be in the form of cash or stocks, ETFs and Bonds after applicable haircuts.