The amount of equity (collateral) required for an investment position, as a percentage of the current value.

When trading on margin (also called 'gearing', or 'leverage'), you need only deposit a fraction of the current value of the instrument you are investing in.

For example, if the commodity you are trading in requires a margin of 5%, you are able to gear (or leverage) your investment 20 times. In other words, a deposit of CHF 10'000 can hold a position of CHF 200'000.

Margin call

When you have exceeded your allowed operating margin, you are subject to a margin call to remedy the situation.

To avoid having your positions closed for you (being stopped out), you must either close or reduce open positions, or send additional funds to cover your positions.

Margin deposit

Funds that a trader must have in a margin account representing a percentage of the current market value of the securities held by the trader.

Sellers of Options must have additional funds in their accounts, besides the Option premium, to protect against possible losses incurred by the market moving against the Options position.

The required margin will vary according to the Option type and whether the seller also has a position in the underlying asset.

For more information on trading conditions at Saxo Bank, go to the Account Summary on your Client Station and open the Trading Conditions section found in the top right-hand corner of the Account Summary.

Margin utilisation

The percentage of the available margin that you are utilising.

Market maker

A broker-dealer firm that accepts the risk of holding a certain number of shares of a particular security in order to facilitate trading in that security. Each market maker competes for customer order flow by displaying buy and sell quotations for a guaranteed number of shares. Once an order is received, the market maker immediately sells from its own inventory or seeks an offsetting order. This process takes place in mere seconds.

Market order

Also known as an “unrestricted order”.

An order to buy or sell an investment immediately at the best available current price. A market order is the default option and is likely to be executed because it does not contain restrictions on the buy/sell price or the timeframe in which the order can be executed.

Mid price

The mid-price is halfway between the bid and the ask (offer) prices. For example, if the bid is 1.4426 and the ask is 1.4430, the mid-price is 1.4428.


A functional component of the platform such as the Open Orders Module, the Chart Module, etc. Modules are opened from the Menu bar.

Moving average convergence/divergence (MACD) technical study

A trend indicator chart study following the relationship between two moving average prices (usually 26-day and 12-day averages). On top of this, a 9-day average of the MACD line is plotted as a control or signal line. In its conjunctions with the MACD line, the signal line may show buy and sell opportunities.