ESMA bans binary options, sets restrictions on CFDs for retail clients

Discussion in 'Wall St. News' started by mlawson71, Mar 27, 2018.

  1. mlawson71

    mlawson71

    The European Securities and Markets Authority (ESMA) announced three-month ban on the marketing, distribution or sale of binary options to retail investors and a set of restrictions on CFDs offered to the same type of clients.

    The restrictions on CFDs include leverage limits on opening positions; a margin close out rule on a per account basis; a negative balance protection on a per account basis; preventing the use of incentives by a CFD provider; and a standardized risk warning.

    To be more precise, the leverage limits on the opening of a position by a retail clients will range from 1:30 to 1:2, depending on the underlying asset.
     
  2. Peter10

    Peter10

    good news!
     
    mlawson71 likes this.