Hi,
I'm from EU, and got this nice e-mail today:
"European regulator (ESMA) announced Forex, Cryptos and CFD products’ measures which come into effect on 1 August 2018.
In anticipation of ESMA's regulations, changes to your trading conditions will take effect at AAAFx on 29 July 2018 at Market Opening.
The new regulations will govern the leverage profiles applied to Retail Clients of AAAFx in order to protect Investors and to ensure both responsible position sizing and risk management.
Please ensure to carefully consult the breakdown below so that you are fully prepared for the upcoming changes.
What are the ESMA Measures referring to?
Leverage Restrictions: Leverages will be reduced and adjusted to reflect the volatility of the underlying asset, as of 29 July 2018.
More specifically:
30:1 Major Currency Pairs
For retail FX positions on the following (major) currency pairs: EUR/USD, USD/JPY, GBP/USD, USD/CHF, CHF/JPY, GBP/JPY, USD/CAD, EUR/CAD, EUR/CHF, EUR/GBP, CAD/CHF, EUR/JPY, GBP/CAD, CAD/JPY, GBP/CHF
20:1 Non-major Currency Pairs, Gold and major Indice
•FX positions on all other currency pairs
•CFD: XAU/USD, UK100, FRA40, GER30, SPX500, US30, NAS100, AUS200, EUSTX50
10:1 Commodities other than Gold and non-major equity Indices
USOIL, UKOIL, NGAS, XAG/USD, Copper, CHN50, and ESP35
5:1 Bund
2:1 Cryptocurrencies CFDs
Will this impact my currently open positions?
The abovementioned restrictions will apply to all positions of the AAAFx Retail Clients, existing and new, as of 29 July 2018.
We strongly advise you to manage your currently open positions and ensure that you have enough equity in your account to cover the new margin requirements in order to avoid margin calls and positions being liquidated.
To safeguard your account, we recommend that you take action as soon as possible."
And here is the best part:
"Fund your account"
So, thanks ESMA, margin requirements will increase by x3 or x4 for my open positions, free margin will be less, so I'm closer to a margin call now than ever before. Good job, you protected retail traders! In one or another way they will put more money in brokers pocket. Either because a margin call or by depositing more to avoid margin call! Well done!
I'm from EU, and got this nice e-mail today:
"European regulator (ESMA) announced Forex, Cryptos and CFD products’ measures which come into effect on 1 August 2018.
In anticipation of ESMA's regulations, changes to your trading conditions will take effect at AAAFx on 29 July 2018 at Market Opening.
The new regulations will govern the leverage profiles applied to Retail Clients of AAAFx in order to protect Investors and to ensure both responsible position sizing and risk management.
Please ensure to carefully consult the breakdown below so that you are fully prepared for the upcoming changes.
What are the ESMA Measures referring to?
Leverage Restrictions: Leverages will be reduced and adjusted to reflect the volatility of the underlying asset, as of 29 July 2018.
More specifically:
30:1 Major Currency Pairs
For retail FX positions on the following (major) currency pairs: EUR/USD, USD/JPY, GBP/USD, USD/CHF, CHF/JPY, GBP/JPY, USD/CAD, EUR/CAD, EUR/CHF, EUR/GBP, CAD/CHF, EUR/JPY, GBP/CAD, CAD/JPY, GBP/CHF
20:1 Non-major Currency Pairs, Gold and major Indice
•FX positions on all other currency pairs
•CFD: XAU/USD, UK100, FRA40, GER30, SPX500, US30, NAS100, AUS200, EUSTX50
10:1 Commodities other than Gold and non-major equity Indices
USOIL, UKOIL, NGAS, XAG/USD, Copper, CHN50, and ESP35
5:1 Bund
2:1 Cryptocurrencies CFDs
Will this impact my currently open positions?
The abovementioned restrictions will apply to all positions of the AAAFx Retail Clients, existing and new, as of 29 July 2018.
We strongly advise you to manage your currently open positions and ensure that you have enough equity in your account to cover the new margin requirements in order to avoid margin calls and positions being liquidated.
To safeguard your account, we recommend that you take action as soon as possible."
And here is the best part:
"Fund your account"
So, thanks ESMA, margin requirements will increase by x3 or x4 for my open positions, free margin will be less, so I'm closer to a margin call now than ever before. Good job, you protected retail traders! In one or another way they will put more money in brokers pocket. Either because a margin call or by depositing more to avoid margin call! Well done!