New Esma Rules Forex

New esma rules forex

What the New ESMA Leverage Rules Mean for European Traders

Poundtrader is right. New restrictions will only be applied to CFD products.

The restrictions to be applied to CFDs are:
  1. Leverage limits on the opening of a position by a retail client from 30:1 to 2:1, which vary according to the volatility of the underlying asset:
    30:1 for major currency pairs;
    – 20:1 for non-major currency pairs, gold and major equity indices;
    – 10:1 for commodities other than gold and non-major equity indices;
    – 5:1 for individual equities and other reference values;
    – 2:1 for cryptocurrencies;
  2. A margin close-out rule on a per account basis;
  3. Negative balance protection on a per account basis;
  4. A restriction on the incentives offered to trade CFDs;
  5. A standardised risk warning.

GAIN Capital on ESMA CFD leverage restrictions: less than 5% of Revenue at risk

ESMA confirms 30x max CFD leverage and Binary Options ban