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FX Leverage to be limited to 1:30 due to ESMA's intervention measures from August 1st
Important announcement regarding to ESMA’s intervention measures.
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The European Securities and Markets Authority (ESMA) announced its decision to implement intervention measures which include, a limit on the amount of leverage that can be offered to retail traders, a 50% margin close-out rule, and negative balance protection.
The ESMA deadline for the implementation of these changes is on 1st of August 2018.
LCG would like to notify its clients that the new measures will take effect on your account during the weekend of July 28th- 29th.
How will my trading be affected?
The main difference you will experience is an increase in margin requirements on any positions opened from July 29th on market open onwards.
Please see the table below for details of the ESMA changes.
| Asset class | Maximum leverage from July 29th |
|---|---|
| Major FX – currency pairs containing any two of the following: USD, EUR, JPY, GBP, CAD, CHF | 30:1 |
| Minor FX – all other currency pairs | 20:1 |
| Major indices – UK 100 , Wall Street, Germany 30, US 500, US Tech 100, EU Stocks, France 40, Japan 225, Australia 200, US Dollar Index | 20:1 |
| Minor indices – all other indices | 10:1 |
| Gold | 20:1 |
| Commodities – Silver | 10:1 |
| Shares | 5:1 |
Important information regarding your account.
Please read carefully how this implementation might affect your account and the steps you may need to take:
- The new leverage settings will be applied on all accounts from 28th- 29th of July.
- Any pending orders will be deleted from the trading accounts.
- If there are any open positions on your account, it will be placed in a close-only mode (meaning, you will only be able to close any open positions and you will not be able to open any new positions on the specific account after July 29th market open). If this occurs, you will need to open a new trading account and fund it to open new positions.
- You can open a new trading account by login in to your MyLCG page and select the Add Account option.
