Saxo allows Bonds to be used as collateral for margin trading (with Forex, CFDs, Futures or Contract Options) - Professional clients only. The collateral value available for margin trading depends on the rating of the bond, as outlined below:
Rating Definition*
|
Margin Collateral
|
|---|---|
Highest Rating (AAA)
|
95%
|
Very High Quality (AA)
|
90%
|
High Quality (A)
|
80%
|
* as rated internally by Saxo Bank
Example: 80% of the market value of a bond position with an A rating can be used as collateral (instead of cash) to trade margin products such as Forex, CFDs or Futures and Options.