Contract for Difference (CFD)

CFDs are asset derivatives that allow you to invest in assets but offer many important advantages that make them ideal for taking advantage of short-term/intra-day asset movements. Through your trading account at Saxo Bank you can trade more than 7000 different CFDs and nearly 30 Index-tracking CFDs across over 20 exchanges worldwide.

Index-Tracking CFDs
Index CFDs are also available that allow effective trading of over 25 major indices. Index CFDs have low margin requirements (leverage your investments up to 20 times) and offer all the trading advantages of Stock CFDs, including short selling.

Direct Short Selling
Take advantage of falling markets with direct short selling. With CFDs, short selling to take advantage of downward price movements is just as easy as buying the asset. Executing a short sell is done in exactly the same way as a long trade and can be done on a live tradable price quote.

Margin Trading
Magnify small intra-day price swings by depositing only a fraction of the trade value in collateral (from as little as 5%). Saxo Bank allows you to leverage major index CFD investments up to 20 times (5% margin requirement) where an investment of only USD 10,000 can be used to command a CFD position of up to USD 200,000 in the market.

Magnify Dividends as well as Price Movements
Trading on margin magnifies dividends as well as price movements and if you hold a long CFD position on its ex-dividend day, you will receive dividends as if you held the stock.