ESMA measures on the provision of CFDs

The European Securities and Markets Authority (ESMA) has published in the Official Journal (OJ) of the European Union the measures on the provision of Contracts for Differences (CFDs) to retail investors that will take effect on 1st August.

The product intervention measures are:
Stop out level at 50% on all FxPro platforms

From 1st of August 2018, stop out levels will be at 50% on all FxPro trading platforms and for all clients. Clients with open positions and margin level between 20-50% have highest probability of reaching stop out levels.

On 30/07/2018 open 1 lot GOLDEURO at price 1070. Required margin is 2,140 EUR (2%*1*100*1,070 EUR).

At end of day 31/07/2018 the account Equity is 856 EUR and thus the Margin Level 40 % (= Equity/Margin*100 = 856/2,140*100)

With current stop out level at 20% the position will remain open since the Margin Level is Higher than 20%.

On 01/08/2018 the stop out level is increased to 50%, with the account Margin Level being lower at 40%, client will be stopped out (i.e. the position will close).
Margins required for the positions opened prior to 01/08/2018 will not be affected.

On 30/07/2018 open 1 lot GOLDEURO at price 1070. Required margin is 2,140 EUR (2%*1*100*1,070 EUR).

At end of day 31/07/2018 the account Equity is 856 EUR and thus the Margin Level 40 % (= Equity/Margin*100 = 856/2,140*100)
From 1st of August 2018 the margin required for hedging will be based on new rules.
Traders should ensure that they have enough Free Margin in their trading account to open a new position based on the new margin requirements.
The following table shows the maximum leverage per asset class that will apply after 1st August 2018 for Retail clients registered with FxPro Financial Services Ltd or FxPro UK Limited:
FINANCIAL INSTRUMENTSMAX LEVERAGE
Forex Majors1:30
Forex Minors1:20
Gold, Gold oz & Gold gr1:20
Spot Index Major1:20
Indices Futures1:20
Silver1:10
FINANCIAL INSTRUMENTSMAX LEVERAGE
Commods Futures1:10
Energy Futures1:10
Energy Spot1:10
Spot Index Minor1:10
US, UK, French & German Shares1:5
Cryptos1:2
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