Net Free Equity (NFE) explained

Net Free Equity (NFE) is the value available in a client's trading account that can be used as margin collateral for margin trading. It is essentially the funds available for trading after accounting for any margin requirements. Here is a more detailed breakdown:

• Calculation of NFE: NFE is calculated as the value-dated cash balance of the main trading account, plus or minus any cash balances on sub-accounts in the same currency. It also includes any unrealized profits or losses from open positions such as CFDs, FX Forwards, and Futures on the main trading account and sub-accounts in the same currency
• Usage of NFE: NFE is used to determine the margin available for trading. It is important for clients to maintain a positive NFE to avoid margin calls or the forced liquidation of positions. If the NFE falls below a certain threshold, it could indicate that the account is at risk of not meeting margin requirements
• Impact on Trading: A positive NFE means that the client has sufficient funds available for margin trading, while a negative NFE indicates that the client may need to deposit additional funds or close some positions to meet margin requirements.
• Interest Calculation: Interest on deposits in the main account is calculated on the NFE, and for sub-accounts, it is calculated on the Account Value. The interest is calculated daily and booked monthly. Positive NFE/Account value above certain thresholds will be given interest according to the account tier, and negative NFE/Account value will be deducted interest

It's important to note that the NFE is continuously calculated and can fluctuate based on account trading activity and market movements.

Where to view Net Free Equity amounts

The Net Free Equity amounts are visible within SaxoConnect by navigating to the client and selecting the Interest Summary report.