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 USD 10,000 can hold a position of USD 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 that represent 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 the 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 recognised institution or individual willing to trade certain securities any time that a trader wants to buy or sell. The incentive for the market maker to buy or sell at all times is the spread, or difference, between the bid and ask prices.

Market order

An order to buy or sell a specified instrument as soon as possible at the price obtainable in the market.

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.