27 July 2016

New equity rating model

​​​​​On 12th September 2016, Saxo will introduce a simplified equity rating model used to determine the:margin required for trading CFDs...

​​​​​On 12th September 2016, Saxo will introduce a simplified equity rating model used to determine the:

  • margin required for trading CFDs and stock options

Margin Categories

The new simplified rating model rates equities into five categories from 1 (low-risk) to 5 (high-risk) stocks.

Rating

Margin

1

10%

2

20%

3

40%

4

80%

5

100%

 

The margin requirements for CFD indices will be unaffected by this change.

Stock CFDs

For CFD stocks in category 1, you need to maintain only 10% of the market value of the position as collateral, allowing you to leverage up to 10 times. For CFD stocks in categories 4 you must maintain 80% of the position value. For CFD stocks in 5 you need to maintain the full value of the position as margin. ​

Continuous re-rating

In addition to the simplification of the categories, from 12th September we will be monitoring and re-rating equities on a continuous daily basis. This means that we can adjust individual stock ratings based on current market events, moving them into more appropriate risk categories. This continuous risk rating is to protect you against over-leveraging positions in stock which have become more risky.

Current rating shown in the platforms

The current ratings for CFDs and stocks can be seen in the Trading Conditions in the trading platforms.
SaxoTrader

  • the Standard Margin required for CFD stocks can be seen under
    Account > Trading Conditions
    > CFD Stock/Index Instrument List (grouped under exchanges)

SaxoTraderGO
The Margin Requirement for CFD stocks can be found under Account > Trading Conditions > Search for stock or CFD