{"id":9116,"date":"2018-07-28T10:22:47","date_gmt":"2018-07-28T02:22:47","guid":{"rendered":"https:\/\/www.swingfish.trade\/blog\/?p=9116"},"modified":"2018-09-16T02:02:25","modified_gmt":"2018-09-15T18:02:25","slug":"esma-restrictions-for-august-2018","status":"publish","type":"post","link":"https:\/\/www.swingfish.trade\/blog\/library\/good-to-know\/2018\/07\/esma-restrictions-for-august-2018\/","title":{"rendered":"ESMA Restrictions for August 2018"},"content":{"rendered":"<blockquote><p>everyone is talking about the ESMA issues that will come up next month<\/p>\n<h3>here is a short overview of how they will reflect on you<\/h3>\n<\/blockquote>\n<p><!--more--><\/p>\n<h4>this is a intervention ONLY!<br \/>\nnot a Law or permanent Regulation! and is subject to update\/change in November 2018!<\/h4>\n<h4>you are ONLY affected by this change(s) if you do live in the European Union!<br \/>\nif you live in the\u00c2\u00a0United Kingdom, these changes are in effect too until &#8220;Hard Brexit&#8221; [<a title=\"\" href=\"https:\/\/www.esma.europa.eu\/press-news\/esma-news\/esma-reminds-uk-based-regulated-entities-about-timely-submission-authorisation\" target=\"_blank\" rel=\"noopener\">Details<\/a>] [<a title=\"\" href=\"https:\/\/www.fca.org.uk\/news\/statements\/fca-statement-esma-temporary-product-intervention-retail-cfd-binary-options\" target=\"_blank\" rel=\"noopener\">FCA Statement<\/a>]<\/h4>\n<p><!--more--><\/p>\n<p>more details on the <a title=\"\" href=\"https:\/\/ec.europa.eu\/info\/law\/markets-financial-instruments-mifir-regulation-eu-no-600-2014_en\" target=\"_blank\" rel=\"noopener\">MiFIR Website<\/a>, or the <a title=\"\" href=\"https:\/\/www.esma.europa.eu\/press-news\/esma-news\/esma-adopts-final-product-intervention-measures-cfds-and-binary-options\" target=\"_blank\" rel=\"noopener\">ESMA Website<\/a>.<\/p>\n<hr \/>\n<h3>CFD Accounts:<\/h3>\n<p><strong>Leverage<\/strong> will be limited based on the Symbols you do trading:<\/p>\n<ul>\n<li><strong>30:1<\/strong> for major currency pairs<\/li>\n<li><strong>20:1<\/strong> for non-major currency pairs, gold and<span style=\"font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen-Sans, Ubuntu, Cantarell, 'Helvetica Neue', sans-serif;\"> major indices<\/span><\/li>\n<li><strong>10:1<\/strong> for commodities other than gold and non-major equity indices<\/li>\n<li><strong>5:1<\/strong> for individual equities and other reference values<\/li>\n<li><strong>2:1<\/strong> for cryptocurrencies<\/li>\n<\/ul>\n<p>(sadly Major and minor is not directly defined, so that likely up to the Broker)<\/p>\n<p><strong>Margin Calls<\/strong> will be generally at 50% Free margin<br \/>\nstop-outs on &#8220;per-account base&#8221; (this widely\u00c2\u00a0a standard anyway on most platforms for may years already)<\/p>\n<p><strong>Negative Balance Protection<\/strong> (on per account base)<\/p>\n<blockquote><p>important here is the &#8220;<strong>per account base<\/strong>&#8220;,<br \/>\nmeaning if you have 2 accounts, the Broker can not use funds from the other account to pay for margin losses.<\/p><\/blockquote>\n<h6>a Note from SwingFish to this topic:<br \/>\nbeeing &#8220;<span style=\"text-decoration: underline;\">Protected<\/span>&#8221; is not always a good thing, as brokers can use this as a reason to &#8220;hedge&#8221; you in order to manage the internal risks.\u00c2\u00a0keep in mind, there is no such thing as a free ride!<\/h6>\n<hr \/>\n<h3>Binary\u00c2\u00a0Options:<\/h3>\n<p>as of 1. August 2018, Marketing, Distribution and\/or Sale of Binary options is\u00c2\u00a0prohibited in all of the European Union.<\/p>\n<hr \/>\n<p>sidenote:<\/p>\n<p>the <a title=\"\" href=\"https:\/\/ec.europa.eu\/info\/law\/markets-financial-instruments-mifir-regulation-eu-no-600-2014_en\" target=\"_blank\" rel=\"noopener\">European Commission<\/a>\u00c2\u00a0gave ESMA the power to change this regulation in 3 Months, so this is sort of a Probation for 3 months. expect some more changes to come in November.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>everyone is talking about the ESMA issues that will come up next month here is a short overview of how they will reflect on you<\/p>\n","protected":false},"author":1,"featured_media":9117,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[41],"tags":[],"class_list":["post-9116","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-good-to-know"],"_links":{"self":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/9116","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/comments?post=9116"}],"version-history":[{"count":11,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/9116\/revisions"}],"predecessor-version":[{"id":9457,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/9116\/revisions\/9457"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/media\/9117"}],"wp:attachment":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/media?parent=9116"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/categories?post=9116"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/tags?post=9116"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}