Why has my order been rejected?

MOST COMMON REASONS

Exposure cannot be increased due to client configuration

Reason: You have probably received a request from Saxo to update your personal details and there are some actions needed from your side.

Exposure cannot be increased due to instrument configuration

Reason: The instrument you are trying to trade might have certain restrictions or limitations. Among others, these are the most common reasons:

• Some OTC (Pink sheets) can only be reduced.
  
  
  
• You are trying to trade a US Publicly Traded Partnership (PTP) security. Read more: Important changes on US Publicly Traded Partnership (PTP) Securities
• Your trading amount has exceeded "exposure limit". Why do I receive the error "Trade would exceed client exposure limitations"?

  

• Other types of Stocks could have the "Reduce only" status, meaning that you can't increase exposure, only reduce (Sell existing positions). 

What can you do?: 

For PTPs read the articles suggested above to know more. Unfortunately, no solution can be provided for the instruments that can only be reduced.

Trade would exceed the available margin. Review your positions and orders

Reason: The trade would result in a too high margin utilization given the exposure and cash availability in the account you are placing the trade from.

What can you do?:

• You can add more funds to your account: How do I fund my account?
• You can also try to reduce the trade size.

You have insufficient funds to place this trade

Among others, these could be the reasons:

• The cash balance available in your account is too low. Please deposit more funds or reduce the value of the trade.
• You have pending open orders that if executed will need cash if they increase your exposure. Therefore the system reserves cash to place that trade. Please check your pending orders.
• Cash Buffer. Saxo reserves a cash buffer before any trade execution. The buffer is to ensure you have sufficient cash to cover commissions/fees as well as ensure that you will not go into negative in case of a market gap.

The last one is relevant for trading cash instruments - stocks, bonds, and ETFs. Please read more below.

Market orders, placed while the market is closed

Summary

Before the system allows any client to submit an order, there are a few pre-checks in place. These pre-checks try to ensure that clients:

1. Do not trade themselves on margin.
2. Will have a positive cash balance in case the order gets executed.
3. Have a positive cash balance in case the order is executed, and there will be sufficient cash balance so that all of the positions can subsequently be closed at a later point.