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. Read more about client information update.

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 limitation"?

  

• 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 on market order cash buffer or here.

You cannot sell a call option

You may receive this message:

"You are only allowed to sell call options as part of a covered call strategy on high-risk rating securities."

If the rating of an option is 6, it is only possible to short-sell it as part of a covered call if you possess sufficient stocks to cover.

You cannot sell the stocks you own

Among others, these could be the reasons:

• You have initiated a share transfer. Once the transfer process has started, the positions will be locked. You will see this message: "Position is blocked and cannot be closed". You can contact us to cancel the share transfer if the position is still with us.
• If you hold a covered call strategy on an option with a rating of 6 and attempt to sell the stocks that are designated to cover the short call, you will encounter a rejection with the following reason: "Closing underlying position used in a covered call strategy is not allowed for high-risk rating security. Close the short call option(s) first." If you wish to sell the stocks that cover the short call in the covered call strategy, you should close short call options first. 

Market orders, placed while the market is closed

Placing market orders when the market is closed requires using the previous closing price as the basis for calculating the total cash needed for the purchase. However, news releases during market closure can cause the stock to reopen at a significantly higher price, thereby requiring more funds to complete the purchase. The higher an instrument's rating, the more volatile it is considered, and thus a larger cash buffer is needed for placing market orders when the market is closed.

If you wish to place a market order while the market is closed, you must have the additional cash buffer available. For example, if Share A closed at $100 and is rated 3, placing a market order to buy 10 shares will require ($100 x 10) x 1.10 = $1,100 in cash. If Share A is rated 5, the market order will require ($100 x 10) x 1.25 = $1,250. Commission and fees are not included in this calculation.