ESMA Regulations Q&A
Will EBH be affected by the recent ESMA regulations introduced in the European Union?
In a word, yes. ESMA, the European Securities and Markets Authority, is a financial regulatory institution of the European Union. As EBH is based and regulated in the European Union, trading with us is regulated by ESMA’s decision.
How will my trading be affected by ESMA?
The most noticeable aspect of ESMA’s decision is the reduction in the amount of leverage we can offer our clients. New leverage limitations will be:
- Major currency pairs – up to 1:30
- Non-major currency pairs, gold and major indices – up to 1:20
- Commodities other than gold and non-major equity indices – up to 1:10
- Individual equities – up to 1:5
- Cryptocurrencies – up to 1:2
When will the ESMA decision take effect?
We will apply lower leverage, as per ESMA’s decision, from 1st August 2018
For how long will these changes be in place?
These restrictions will be applied on a temporary basis, for a period of 3 months. The temporary period will enable ESMA to gauge the market reaction to the restrictions and may influence their decision to prolong the restrictions when the period ends.
Stop Out Level
There will be a new Margin Stop out level of 50% (previously 80%). If your margin falls below 50%, EBH will close your position automatically.