Hello, artisan
That’s how I read it also.
Back in December, I posted the following:
[For emphasis, I have added bold type in your quote (above), and in my quote (which follows).]
And LeapRate appears to interpret that language in the same way, also.
Here is their article on the ESMA announcement:
[U]Excerpt[/U] (bold type added) –
"The new measures will be published in the coming weeks in the Official Journal of the EU (OJ) and will start to apply one month, for binary options, and two months, for CFDs, after their publication in the OJ.
In brief:
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Forex and CFD leverage will be limited to 30x, and that just for major currency pairs. Lower leverage (see more below) will be enforced on non-major currency pairs, gold, indices, other commodities, individual equities and cryptocurrencies.
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Binary Options are banned.
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Margin close out rule on a per account basis.
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Negative balance protection on a per account basis."
On related topics, here are two articles from Finance Magnates, reporting comments on the ESMA announcement by two brokers, IG Group and Gain Capital:
[U]Excerpt[/U] –
“Most importantly, the ESMA has proven that the fabric of the European Union’s institutions is shifting into a direction that is only welcoming to big corporations with the accompanying lobby groups.”
[U]Excerpt[/U] –
“Despite its stated aim to protect individual investors from losing money, some brokers say that the proposed 1:30 to 1:2 leverage will increase the traders’ risks, because they will need to deposit more capital upfront that they could potentially lose. In addition, those not able to deposit the necessary margin capital might be tempted to use offshore market makers in loosely regulated jurisdictions.”
