1) Target Bid/Ask spreads
The target bid/ask spreads listed are our best possible spreads used in normal market conditions. Under certain market conditions - such as over the release of key economic figures, during periods of volatile market conditions, and during the sometime illiquid European night time spreads may be wider and auto execution limits may be lowered or disabled. For certain categories of clients, the spreads may in general be wider by up to 2 pips. The spreads applicable to a client’s account will be displayed in the SaxoTrader. Please consult an assigned Introducing Broker or Saxo Bank to obtain further information about the spread range and its account implications.
2) Margin requirements
Forex is traded on margin enabling clients to leverage a small margin deposit for a much greater market effect where:
- Reduced margin rates apply to the first EUR 50,000 (or equivalent) of investment collateral
- Normal margin rates apply to all investment collateral over EUR 50,000 (or equivalent).
3) Autoexecuted trades
Major currency trades can be autoexecuted for amounts below the autoexecution limit. Autoexecuted trades are automatically accepted without intervention from the bank. For trade sizes over the autoexecute limit and in volatile market conditions, the trade must first be approved by a dealer which normally takes just a few seconds.
* Note that these are typical autoexecute limits that can change over the day, depending on the market conditions and available liquidity.
4) Trading on bands
Your trades will be subject to price bands when trading below the auto-execution limit described above. This in effect matches the best possible target spread to the amount traded and removes unnecessary delays and manual intervention. The smaller the amount traded, the narrower the spread. Each time you trade, a reload period begins. If you continue to trade within the reload period, your cumulative volume can affect a band jump. A band jump will automatically quote a spread respective to the cumulative volume traded within the reload period. After the reload period elapses, the bands are reset. The target spreads and amounts for the bands applicable to your account will be displayed in your SaxoTrader.
5) Ticket fees for low-value trades
For Forex trades below the Ticket Fee Threshold listed, a small ticket fee of USD 10 is added to the trade to cover administration costs.
6) Stop Orders
For all "no-slip" stop orders on Majors there is a minimum distance to current market. This means that stop and trailing stop orders for the below currency pairs must be placed with a minimum distance to market as indicated in the table below:
| Cross |
Min Distance and Max Gap (pips) |
Cross |
Min Distance and Max Gap (pips)
|
|
|
|
|
| AUDUSD |
15
|
GBPUSD |
25
|
| EURJPY |
20
|
NZDUSD |
20
|
| EURUSD |
20
|
USDCAD |
20
|
| EURCHF |
20
|
USDCHF |
20
|
| EURGBP |
15
|
USDJPY |
20
|
| GBPCHF |
25
|
USDHKD |
20
|
| GBPJPY |
50
|
|
|
Orders will automatically be rejected if they are not placed at a greater distance from market prices than shown above. This applies to both “no-slip” stop orders and trailing stop orders.
What is a "no-slip" stop order?
For the Majors, Saxo Bank will attempt to fill stop orders at the price level set by the investor for amounts up to 3 million in the base currency, except if the pair gaps more than the max-gap value defined for the specific cross. The max-gap values for each cross are the same as the minimum distance values defined in the table above.