ESMA LEVERAGE CHANGES

The European Securities and Markets Authority (ESMA) have announced that they will introduce new measures relating to trading in FX and Contracts for Difference (CFD) for retail clients.

SVS Securities plc, as a company authorised and regulated by the Financial Conduct Authority, are obligated to adopt these new measures. This will mean that the trading conditions of your account will change and you should consider carefully how they affect your trading strategy going forward.

What are the changes?

  • Reduced Leverage - Lower leverage limits will be applied to new trades in FX, Indices, Precious Metals and Oil. Any open positions will remain margined at the previous levels.
  • Close-Out Level – The margin Close-Out level to be applied to your account will be 50%.
  • Negative Balance Protection – We will guarantee that your account losses will be limited to the sum of your deposits and you will not fall into negative equity.
  • No Bonus – We will no longer be able to offer bonus incentives or credit.

When will the changes take place?

The changes will be applied to your trading account on Sunday 29th July 2018.

What do I have to do?

  • Check the table below to see the new leverage/margin rates.
  • Check below for the new MT4 symbols will be introduced if you have open positions at the time of the change to the new rules.
  • Consider how the new leverage restrictions may affect your trading strategy and if you will be adequately capitalised.
  • Consider if you need to update your EA to function correctly when the new rules are applied.
  • Contact the SVSFX Support Team if you need any help or have questions.
Description MT4 Symbol Open Positions New Positions
Max Leverage Margin Max Leverage Margin
Australian Dollar to Canadian Dollar AUDCAD 1:400 0.25% 1.20 5.00%
Australian Dollar to Swiss Frank AUDCHF 1:400 0.25% 1.20 5.00%
Australian Dollar to Japanese Yen AUDJPY 1:400 0.25% 1.20 5.00%
Australian Dollar to New Zealand Dollar AUDNZD 1:400 0.25% 1.20 5.00%
Australian Dollar vs Singapore Dollar AUDSGD 1:400 0.25% 1.20 5.00%
Australian Dollar to US Dollar AUDUSD 1:400 0.25% 1.20 5.00%
Canadian Dollar to Swiss Frank CADCHF 1:400 0.25% 1.30 3.33%
Canadian Dollar to Japanese Yen CADJPY 1:400 0.25% 1.30 3.33%
Swiss Franc to Hungarian Forint CHFHUF 1:400 0.25% 1.20 5.00%
VIEW MORE

Important Changes to your MT4 Symbols

  • Forthcoming ESMA rules on leverage limits are to be applied to new positions only; any positions opened before implementation of the new rules will remain at the same leverage they were originally opened.
  • In order for your MT4 platform to manage this, those open positions will be moved to a different MT4 symbol. These new symbols will be placed to ‘close-only’ and you may only close these positions, not open new ones.
  • You can continue to open new trades on the same symbols that you are trading now but adjusted to calculate at the new leverage levels.

Please see the table below.

Changes to trades already open before 29/7/2018
Current MT4 Symbols
EURUSD
XAUUSD
XAUUSD.fx
USOUSD

All open trades will be automatically migrated to the symbols with .'dot' extension.

New MT4 Symbols
EURUSD.
XAUUSD.
XAUUSD.
USOUSD.

These symbols will be 'close-only'. You are not able to open new trades.

Changes for new trades opened after 29/7/2018
Current MT4 Symbols
EURUSD
XAUUSD
XAUUSD.fx
USOUSD

You will still be trading the same symbols as before the changes but with the new leverage limits applied.


IMPORTANT NOTES:

  • MT4 server is operational from 10pm Sunday until 11pm Friday
  • All products have a lots size of 100,000 of base unit,except XAUUSD is 100 and XAGUSD is 5,000
  • Leverages are assuming a main leverage of 1:400. Should your account have 1:200 then above will be halved


DETAILS OF PRICING:

  • Floating spreads with Market execution
  • Spreads and limits might be increased during market data

SVS Securities Plc. Registered in England and Wales no. 04402606. Registered Office: Princes Court, 7 Princes Street, London, EC2R 8AQ. Authorised and regulated by the Financial Conduct Authority, Firm No. 220929. A Member of the London Stock Exchange and a HM Revenue & Customs Approved ISA Manager.

© 2019 SVS Securities - All rights reserved.

DOWNLOAD OUR FREE E-BOOK

  • Is the Forex Market Right for You? Find Out.
  • Only What You Need to Know To Get Up to Speed Fast.
  • Boost Your Understanding and Establish Confidence.
  • Quickly Understand the Essentials of the Largest, Richest Market in the World.
FILL THE DETAILS HERE

Register me for the Webinar

Download Now
  • Your Information Will be Kept Confidential.