Go professional with Libertex! 5 primary questions about the new ESMA policy

The new ESMA policy comes into force on July 30, 2018. The act affects trading terms for leveraged products, such as CFDs.

Implications for retail traders

  • Limited multiplier
  • Restriction on access to specific products

Implications for professional Libertex traders

  • Up to x600 multiplier
  • Access to over 200 instruments
  • Negative balance protection

What is the multiplier?

Limited leverage

Asset classLeverage limit
FX Majors30
FX Minors20
Major indicies20
Minor Indices10

Multiplier usage example

Balance 2000
Trade number 123 123 123 Total inv.
Total position20 00012 5001 000
Used margin*666.67625.00500.00
Available to use for open other trades1333.33708.33208.33
Total inv.550
*Used margin = Total position * New margin rules

How does it work?

For example, you place a EUR/USD total order 100,000 at the price of 1.1750. Then:

Your current margin requirement
Your margin requirement under new rules
Your margin requirement with a professional account

What should you be aware of?

Professional Clients enjoy a lower level of protection as compared to Retail Clients. You can find additional information about Protection Rights in Paragraph 7 of the Client Categorizational Policy.

Are you a pro trader?

  • Have you traded leveraged derivatives in significant sizes over the last year?

  • Have you worked in the financial sector or in a professional position requiring knowledge of derivatives trading, for at least one year?