On Saxo platforms you are able to trade in various financial instruments, among these financial contracts such as FX Spot, FX Options, CFDs, Futures etc.
When you trade in such contracts, you are not buying an actual asset (as e.g. with stock trading) but you are entering into a contract. As you are not buying the actual asset but entering into a contract, you have the possibility of entering a contract of a higher nominal value than you are holding on the account.
This is what is known as leveraging, gearing or margin trading – the benefit is that profits on successful, leveraged trades can be greater than what would be achieved on non-leveraged trades.
It should be carefully noted that also the opposite is true: leverage can also increase the size of losses.
A complete list of our margins for the different products is available on our website.