The European Securities and Markets Authority (ESMA) announced its decision to implement intervention measures which include restricting leverage available to retail clients to between 30:1 and 2:1, according to the volatility of the underlying asset traded. The ESMA deadline for the implementation of these changes is on 1st of August 2018.
The table below illustrates the impact on leverage afforded to retail vs professional clients. The new ESMA restrictions will not apply to professional clients.
|Asset||Professional Client||Retail Client||Margin Increase|
|Major FX Pairs||200:1||30:1||7x|
Please read the following information carefully before applying for professional client status:
We are not obliged to offer the following to Professional Clients but have elected to continue doing so:
As a professional client, you will lose the following protections:
*Significant size trades are classified as having concluded transactions with an equivalent value of Eur25,000 per transaction in the case of non-leveraged transactions (equities) or a nominal value of Eur100,000 per transaction on forex, bonds and commodities, Eur50,000 on indices, Eur10,000 on single stock CFDs in the case of leveraged transactions.