General risks
As you consider investing with us, it's important to understand the potential risks involved in financial trading. Trading can result in both profits and losses, and these outcomes can occur even when trades are executed according to expert recommendations.
Please be aware that leverage can significantly amplify losses. During periods of high market volatility or economic uncertainty, the value of your investments may fluctuate dramatically, which can adversely impact your financial position. Losses may exceed your deposits, and you may be required to meet margin calls swiftly. Failure to do so could result in the closure of your positions and you will be responsible for any resulting deficit.
Carefully assess your understanding of these risks and consider your financial situation before trading. Independent financial advice can help ensure that trading aligns with your financial goals and capabilities.
Only proceed once you have fully acknowledged and accepted these risks, including the further detailed risks below.
Speculative trading is not suitable for all investors
Any mention of risks related to a particular product or service in a publication should not be seen as a comprehensive disclosure or a full description of all associated risks. Saxo Bank A/S strongly encourages recipients considering trading its products and services to seek and regularly consult with suitable financial advisors before making any investment or transaction.
No recommendations
Saxo Bank A/S does not consider any particular recipient’s investment objectives, goals, financial situation, or specific needs in its publications. Therefore, unless specifically stated, all Saxo Bank A/S publications are intended for informational and/or marketing purposes only and should not be construed as:
- Business, financial, investment, hedging, legal, regulatory, tax, or accounting advice
- A recommendation or trading idea
- Any other type of encouragement to act, invest, or divest in a particular manner
Saxo Bank A/S shall not be responsible for any loss arising from any investment based on perceived recommendations.
No representation, no warranty
Saxo Bank A/S uses reasonable efforts to obtain information from reliable sources, but all publications are provided on an "as-is" basis without representation or warranty of any kind (neither express nor implied). Saxo Bank A/S disclaims liability for any publication not being complete, accurate, suitable, or relevant for the recipient. Specifically, Saxo Bank A/S disclaims liability towards any subscriber, client, partner, supplier, counterparty, or other recipients for:
- The accuracy of any market quotations
- Any delay, inaccuracy, error, interruption, or omission in providing market quotations
- Any discontinuance of market quotations
The publications of Saxo Bank A/S are not updated after their release and may become inaccurate and possibly misleading due to changing circumstances and generally over time, which may vary from seconds and minutes to days, weeks, and months depending on the information. Saxo Bank A/S gives no guarantee against, and assumes no liability towards any recipient for, a publication being outdated.
If a publication becomes outdated, Saxo Bank A/S shall be under no obligation to:
- Update the publication
- Inform the recipients of a publication
- Perform any other action
Any publication may be personal to the author and may not reflect the opinion of Saxo Bank A/S. Saxo Bank A/S reserves the right at its sole discretion to withdraw or amend any publication or information provided at any time without notice (prior or subsequent).
Internet trading risks
There are risks associated with using an internet-based trading system, including hardware, software, and internet connection failures. Since Saxo does not control signal power, its reception or routing via the internet, your equipment configuration, or your connection reliability, we cannot be responsible for communication failures, distortions, or delays when trading online. Saxo employs backup systems and contingency plans to minimise system failure risks. Trading via telephone is also available.
Use of the website
Any use of Saxo Bank A/S’s websites is subject to Saxo Bank A/S’s “Terms of Use” and “Copyright” provisions, both of which are integral to this disclaimer and may be amended from time to time.
Saxo Bank A/S shall not be liable for any damage or injury arising from a person’s or entity’s access to, or inability to access, any Saxo Bank A/S website. This includes damage to computer equipment and systems caused by viruses, malware, and other harmful coding.
Consulting a Saxo Bank A/S website does not establish a customer relationship, and Saxo Bank A/S shall not incur any liability or responsibility towards any person or entity as a result.
Risks for complex products
Complex products have additional risks involved. Before trading, ensure you understand the products and the associated risks.
Read more about other complex product risks.
Extended hours trading
You should consider the following points before engaging in extended hours trading in the US securities market. “Extended hours trading” means trading during (a) “pre-market trading hours” from 7:00 am to 9:30 am Eastern Time, and (b) “after-hours trading hours” from 4:00 pm to 5:00 pm Eastern Time. “Regular hours trading” means trading from 9:30 am to 4:00 pm Eastern Time.
1. General risks for extended hours trading
a. Risk of lower liquidity: Lower liquidity during extended hours may result in partial executions, no executions, or inferior pricing. Liquidity refers to the ease with which market participants can buy and sell securities. Generally, the more orders available in a market, the greater the liquidity. Liquidity is important because it allows investors to buy or sell securities more easily, increasing the likelihood of paying or receiving a competitive price for securities.
b. Risk of higher volatility: Greater price swings may occur, affecting the execution and pricing of orders. Your order may be partially executed, not executed at all, or you could receive an inferior price during extended hours trading compared to regular hours trading.
Volatility refers to the changes in price that securities undergo when trading. Generally, the higher the volatility of a security, the greater its price swings.
c. Risk of changing prices: Prices during extended hours may not reflect those during regular hours, leading to potentially inferior pricing. Additionally, securities underlying the indexes or portfolios may not trade regularly or at all during extended hours. This may cause prices during extended hours trading to not reflect the prices of those securities when regular trading resumes.
d. Risk of unlinked markets: Prices on different extended hours trading systems may vary, resulting in potentially inferior prices compared to what you might receive in another extended trading hours system. Depending on the system or the time of day, the prices displayed in one extended hours trading system may not reflect the prices in other concurrently operating extended hours trading systems dealing in the same securities.
e. Risk of news announcements: Announcements may occur during extended hours trading in combination with lower liquidity and higher volatility, which can then cause exaggerated and unsustainable price movements.
Normally, issuers make news announcements that may affect the price of securities after regular hours trading. Similarly, important financial information is frequently announced outside of regular hours trading.
f. Risk of wider spreads: Lower liquidity and higher volatility during extended hours trading may result in wider spreads.
The spread refers to the difference between the price at which a security can be purchased and the price at which it can be sold.
2. Order handling for extended hours trading
a. Limit orders: All existing limit orders placed for eligible instruments with the “Extended Hours” option enabled on the respective trade tickets will continue to be executed during pre-market trading hours or after-hours trading sessions. Any residual unfilled limit orders after the close of (1) pre-market trading hours will be rolled into regular hours trading; (2) regular hours trading will be rolled into after-hours trading; and (3) after-hours trading will be rolled into pre-market trading, provided the limit order is not cancelled, expired, or otherwise modified by you.
b. Stop orders and conditional orders: These orders will not be triggered by price updates received for instruments available for and during extended hours trading and will only be triggered by price updates for such instruments during regular hours trading.
c. Corporate actions: Instruments affected by a corporate action event may not be allowed to trade during extended hours trading at our discretion unless all relevant orders and positions can be correctly handled.
3. Margin requirements for extended hours trading
Price updates received for instruments available for and during extended hours trading affect the initial margin available but not the maintenance margin. However, your margin utilisation may still change during extended hours trading due to trading activity in the extended hours trading session, including trading in other instruments or currency fluctuation. If your margin requirement is reached or breached during extended hours trading, Saxo may not close any and all contracts and margin positions for such instruments until regular hours trading but may immediately close any other instruments that are in the regular trading session.
4. Account shield during extended hours trading
Your Account value shield will not be triggered by price updates received for instruments available for and during extended hours trading and will only be triggered by price updates for such instruments during regular hours trading.
By participating in extended hours trading, you expressly acknowledge and agree to the unique risks and rules of investing during these sessions. Saxo may not predict or describe all special trading risks that could arise. Therefore, you agree not to hold Saxo responsible for any risks you undertake, whether described above or not, by participating in extended hours trading sessions.
In the event of any inconsistency between this list of General risks and Saxo’s General business terms, the General business terms shall prevail.
Saxo may notify you or make known in our trading platform instruments related to extended hours trading to which we will not quote, restrictions on the amount for which we will quote, or other conditions that may apply to our quote, but any such notification will not be binding on us.
You expressly acknowledge and agree that regardless of whether you engage in extended hours trading, the price updates received for instruments available during these sessions will affect the initial margin available in your account(s) and this may affect or reduce your ability to open new positions on any instruments or withdraw funds. Further, you understand that extended hours trading may not be appropriate for every investor and that you are solely responsible for implementing or adopting any investment decision or trading strategy.