27 July 2016

New equity rating model

On 12th September 2016, Saxo Capital Markets will introduce a simplified equity rating model used to determine the values of stock or ETF positions that can be used as collateral for trading margin products such as Forex.

​​On 12th September 2016, Saxo Capital Markets will introduce a simplified equity rating model used to determine the values of Stock or ETF positions that can be used as collateral for trading margin products such as Forex.

Margin Categories

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

Rating Collateral
1 70%
2 50%
3 25%
4 0%
5 0%

 

For the list of exchanges below, Saxo does not offer collateral regardless of its rating:

Exchange Name
Exchange code
Athens Exchange
xath
Budapest Stock Exchange
xbud
Euronext Lisbon
xlis
Irish Stock Exchange
xdub
Istanbul Stock Exchange
xist
Johannesburg Stock Exchange
xjse
New York Stock Exchange (ARCA)
arcx
Prague Stock Exchange
xpra
TSX Venture Exchange
xtsx
Warsaw Stock Exchange
xwar

 

Stock position as margin collateral

For stocks in category 1, you can use up to 70% of the value of your position as collateral for trading margin products such as FX and Futures. You cannot use the value of your positions of stocks in categories 4 and 5 as margin collateral.

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 Stocks can be seen in the Trading Conditions in the trading platforms.

SaxoTrader

  • the Collateral Value for stocks can be seen under
    Account > Trading Conditions> Stock Instrument list (grouped under exchanges)

SaxoTraderGO

The Collateral Value of Stocks can be found under Account > Trading Conditions > Search for Stock

 

 

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