CFD Margins | Luminor

Trading with leverage

CFDs are traded on margin. This means that you are able to leverage your investment by opening positions of larger size than the funds you have to place as margin collateral.

The margin is the amount reserved on your trading account to cover any potential losses from an open CFD position. It is possible that a loss may exceed the required margin.

Margin requirements vary from instrument to instrument and can be changed at any time to reflect market conditions. For larger re-ratings or changing of margin requirements for very popular instruments clients will be notified in advance where possible.

Please note that DNB Bank reserves the right to increase margin requirements for large position sizes, including client portfolios considered to be of very high risk.

Index Tracker CFDs

Instrument Margin Requirement Leverage
Index Tracker CFDs 10% 1:10

Single Stock CFDs and ETF/ETC CFDs

All  tradable Single Stock CFDs and ETF/ETC CFDs are categorized in 5 different margin groups. Which margin group a CFD falls into depends on the several factors of the underlying instrument: Market Capitalisation (Large, Mid or Small), Volatility (Low, Moderate, High or Extreme), Credit Rating (Excellent, Good, Regular or Poor), Gap tendency (Negligible, Marginal, Critical or Catastrophic) and  Liquidity (High, Medium or Low).

Instrument Rating Margin Requirement Leverage
Single Stock CF​Ds and ETF/ETC CFD​s 1 ​10% ​1:10
Single Stock CF​Ds and ETF/ETC CFD​s 2 20% 1:5
Single Stock CF​Ds and ETF/ETC CFD​s 3 40% 1:2.5
Single Stock CF​Ds and ETF/ETC CFD​s 4 80% 1:1.25
Single Stock CF​Ds and ETF/ETC CFD​s 5 100% 1:1

Margin requirements by CFD type and instrument are always listed Luminor Trade platforms:

 

Forex CFDs and Commodity CFDs

Instrument Margin Requirement Leverage
Forex CFDs and Commodity CFDs 15% 1:6.67

Margin Call

You must maintain the required margin collateral as listed at all times in the Account Summary on the trading platforms:

If at any time while an CFD position is open, and the margin required to maintain that position exceeds the funds available for margin trading on the account, you are in breach of your contract and need to meet the margin requirements again. This can be done by either:

When the required margin exceeds your margin collateral you are at risk of a stop-out where DNB Trade may close your margin positions on your behalf without prior notice.

Risk Warning

CFDs are traded on margin. This means that you are able to leverage your investment by opening positions of larger size than the funds you have to place as margin collateral. Using leverage in trading is extremely dangerous. Margin Trading carries a high level of risk to your capital with the possibility of losing more than your initial investment and may not be suitable for all investors.

Ensure you fully understand the risks involved and seek independent advice if necessary.

See our Risk Warning.