We would like to inform clients that as of August 1, the regulatory framework will impose limits on leverage for Retail Clients that will considerably increase margin requirements on their future trading activity.
The main changes introduced in the updated ESMA regulatory framework are:
- Maximum leverage limit when opening a position will be 30:1 for Majors
- 50% margin close-out rule on per account basis
- Guaranteed limit on losses for negative balance protection
- Prohibition of monetary and non-monetary benefits
- Prohibition of binary options
- Standardized risk warning to be displayed on the percentage of Retail Client accounts that have lost money
Retail Clients who wish to, can request to be classified as Professional Clients if they meet two of the below three criteria:
- Carried out transactions, in significant size, on the relevant market at an average frequency of 10 transactions per quarter over the previous four quarters.
- Their financial instrument portfolio, defined as including cash deposits and financial instruments, exceeds EUR 500,000.
- They have work experience of at least one year in the financial sector, in a professional position which requires knowledge of the transactions or services envisaged.
For more information and to proceed with applying as a Professional Client, click here