An exposure limit is a restriction on the maximum position size that can be opened or maintained in a specific instrument. If an order would cause the total exposure to exceed this limit, the order cannot be placed or executed.
The restriction is set by Saxo's Risk Management department and depends on factors such as rating, liquidity, volatility, and other market conditions. In the event of an exposure limit change, existing client positions will remain unaffected, however future trades and positions will be subject to the new exposure limits.
What products have exposure limits?
Exposure limits are most commonly applied to complex or leveraged trading products, such as CFDs, futures, FX options, and other margin‑based instruments. For CFD stocks, the exposure limit is shown as the maximum number of shares that can be held. For futures and stock options, the limit is expressed as the maximum number of contracts. For FX options, the limit appears as a currency amount in the relevant currency.
Cash products such as traditional stocks, ETFs, and bonds typically do not have exposure limits, as they are traded without leverage.
Where can I find the exposure limit?
To view the exposure limit for an instrument, navigate to the Trading Conditions from the product overview > Instrument > under Instrument see Exposure limit.
Can I open a trade larger than the exposure limit?
Exposure limits cannot be removed for any instrument. However, in certain cases, they may be increased if you meet specific account requirements or are classified as a professional investor.
To learn more about the differences between retail and professional accounts, and how to apply for professional status, please refer to the following article: Retail vs professional client accounts.
For more information, please contact us.