How is leverage affected by ESMA’s new regulation?

Leverage limits on the opening of a position by a Retail client are changing and vary according to the volatility of the underlying:

For major currency pairs	1:30
For non-major currency pairs, gold and major indices	1:20
For commodities other than gold and non-major equity indices	1:10
For individual equities and other reference values	1:5
For cryptocurrencies	1:2

Example

If your current leverage is 1:200 and you open a position 0.1 standard lots on EURUSD, assuming a current market price of 1.1594, your margin requirement is 57.97 USD.

Once the new measures come in to force, your leverage will be 1:30 and the margin requirement for the very same position would be 386.46 USD.

For more information or details, please contact to your broker’s support team.