Questions about CFD trading

What is a CFD?

A CFD (Contract for Difference) is a derivative of a financial product and is used for trading. The CFD price behaves exactly like the underlying asset price.

There is no actual ownership of the underlying asset of reference. A CFD is therefore a derivative product where Saxo Bank is a counterparty to the trade. Since the product is not exchange traded, it is said to be traded over-the-counter (OTC).

CFDs are traded on margin and can be sold short, making it possible to profit in falling markets or to hedge your Stock positions.

What types of CFDs can I trade with Saxo Bank?

Saxo Bank offers over 9,000 CFDs, including CFDs on Stocks from around the world, Forex CFDs, Stock Index CFDs, Commodity CFDs, Bond CFDs and CFDs on ETFs.

All CFDs are available for trading through all Saxo Bank’s online trading platforms - read more.

Which Stock indices can I trade with CFDs?

With Saxo Bank’s Index-tracking CFDs, you can trade over 20 major stock market indices such as the FTSE 100, S&P 500 and Japan’s Nikkei 225 with a single click and the flexibility to trade long or short.

See all contract details of our Index CFDs.

What commodities can I trade with CFDs?

Commodity CFDs offer a simpler way to access the world’s commodities markets, and trade oil, gold, grains, energies and other major commodities on real-time prices.

Click here to see all commodities available.

What Stocks can I trade as CFDs?

With Saxo Bank, you will have access to online CFD trading in all major US, European and Asia/Pacific Stocks.

See the full list of covered exchanges and the Single Stock CFD commissions here or see click on the button below to see the full list of Single Stock CFDs offered by Saxo Bank.

View   individual Single Stock CFD margins

What Bonds can I trade with CFDs?

Bond CFDs offer a simpler way to trade government bonds from a range of countries such as France, Italy and Germany.

Click here to see all Bond CFDs available.

What are the trading rates and spreads for CFDs?

Click here to view our Single Stock CFD commissions.

Click here for our Index CFD spreads.

For full details on spreads and minimum trade sizes for Commodity and Forex CFDs, please click here.

What are the margin requirements for trading CFDs?

The margin requirement depends on the type of CFD and the individual contract.

Margin requirements on CFDs are as low as 0.5% corresponding to a 200:1 leverage. Read more about CFD margin requirements.

Note that with reduced CFD margin requirements, you have an increased exposure to risk.

Where can I learn more about trading CFDs?

You can learn how to trade CFDs with TradeMentor, our free online trading education program. Available right in the trading platform, TradeMentor covers everything from CFD trading basics to technical analysis and advanced trading strategies.

Click here to try TradeMentor now.

Updated September 28th. 2012
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