Spreads and margins
We offer competitive spreads across our full range of CFD instruments, including shares, indices, forex, commodities, cryptocurrencies, metals and bonds CFDs.
We take a form of security (or deposit) against any losses that you may incur when you trade using leverage, this collateral is typically referred to as margin. Both margin rates and maximum leverage ratios vary depending upon the instrument traded, and whether you have been categorised as a retail or professional client.
Events impacting spreads
At certain times and in certain market conditions, our spreads could be wider than usual. This includes:
Be on top of the latest market events with our Market News and Information section.
^Specifically indices which operate on an in hours and out of hours model in parallel with local trading hours for example in / out hours for US indices will be different to Singapore indices.
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Margin
You can trade with leverage from your OANDA account. This means that you can enter into trades larger than your account balance and trade without depositing the full value of the trade you wish to open. One of the benefits of trading with leverage is that you could potentially generate large profits relative to the amount invested. On the other hand, trading with leverage could also result in significant, rapid losses to your capital.
We take a form of security (or deposit) against any losses that you may incur when you trade, this collateral is typically referred to as margin. The margin needed to open each trade is derived from the leverage limit associated with both your account type and the instrument you wish to trade.
Retail clients
As a retail client, your margin and maximum leverage is governed by the Monetary Authority of Singapore (MAS) who set the margin rates and leverage parameters for different asset classes. See our OANDA Asia Pacific Margin Rates page for information about margin rates for Retail Clients.
Accredited investors
As an accredited investor, you can take advantage of higher leverage for certain currency pairs. Maximum leverage and margin rates vary between different asset classes. For more information, access See our OANDA Asia Pacific Accredited Investors Margin Rates page for more.
FAQ
Price volatility and changes in global market liquidity can result in large spread increases around market openings and closings, following news announcements, and during times of uncertainty. At such times, our spreads usually widen to reflect market conditions. However, there may be occasions during which we opt to implement a fixed spread rather than allowing a spread to continue to widen.
If you leave trades open during the weekend or before markets close, or in the event that a particular market is suspended, you cannot close them until the markets reopen. Note that prices may change significantly or "gap" when trading resumes. If prices move against you, a margin closeout may be triggered when trading resumes if you have insufficient funds on your account to support your trading.
Spreads (the difference between the bid price and the ask price) typically widen just prior to closure of the markets and when they open, to reflect decreased liquidity in the global markets. These widened spreads could trigger stop-loss orders or margin closeouts when a position is open at this time.
Margin calls are an important aspect of leveraged trading. If the balance in your account falls to a level that is close to the 50% margin close out rule, a margin call will be triggered. If this happens, you might want to consider adding more funds to your account or closing positions to make sure your account balance is greater than the margin required to maintain open positions.
If one or more of your positions is close to margin closeout, you will receive a margin call alert by email. Margin call alert emails are sent at 9pm GMT daily.
You can avoid margin closeouts by reducing the amount of margin you are using. This can be done by closing some trades.
Note: In a fast moving market, there may be little time between warnings, or there may not be sufficient time to warn you at all. Be mindful of the “margin closeout percent” field in the account summary of the OANDA Trade user interface. The closer the margin closeout percent is to 100%, the closer you are to a margin closeout.
For more information see our learn section.
*You can add stop- loss orders (SLOs) to cryptocurrencies but will not be able to use guaranteed stop loss-orders (GSLO). Reduced margin benefits from stop-loss orders will not apply.
Volatility can bring risk as well as opportunity, and price fluctuations could see a cryptocurrency lose material amount of value overnight. Due to this high volatility, the cryptocurrency market is considered high risk. Prior to trading in cryptocurrencies, you should understand your appetite for such risks, and implement a suitable risk management strategy accordingly. CFD trading is high risk and is not suitable for everyone.
Cryptocurrencies are not regulated by the Monetary Authority of Singapore (MAS) as they are not legal tender or securities. Investors should be aware that they do not have any legislative protection when they deal with cryptocurrencies and related investment products. If you choose to invest in unregulated products, you will not be protected under MAS regulations. Please ensure that you are fully aware of the risks involving cryptocurrencies and if in doubt, you should consult an independent financial adviser under a separate engagement. To find out more information about cryptocurrencies and its risks, you can go to the MoneySense website.