ESMA MEASURES FOR RETAIL AND PROFESSIONAL CLIENTS
Following the decision of the European Securities and Markets Authority (ESMA) on the provision of Contracts for Differences, new trading terms will be applied to retail clients on February 1st 2019, for a temporary period of 3 months.
It may be hard to get your head around the new measures, wondering about how they will be affecting you. Please take a look at the possible benefits and costs that this ruling may have on your trading.
Increased protection of your funds. High leverage can amplify not only profits, but also losses. By implementing tighter leverage rules, your risk of loss is reduced.
Your margin requirements will be higher than those of Professional Clients and hence you must make sure that you have adequate funds in your account.
A larger amount of your balance is protected from loss.
You must monitor your margin level closely and maintain it higher than 50% to avoid being negatively affected.
The measures are temporary and will be re-evaluated by ESMA after a 3-month period.
Professional Clients gain exemption from all restrictions imposed by ESMA and can continue trading with Dynamic Leverage while keeping the same margin close out level as before.
To be categorised as a Professional Client, you must fulfil 2 out of the 3 following criteria:
If you are trading as a Retail Client and wish to apply to be classified under the Professional Client category, please contact us.