New Leverage Limits for Retail Clients
Dear Trader,
The Australian Securities and Investments Commission (ASIC) new leverage limits for retail clients are now less than one week away and will come into effect on Monday 29th March. The new leverage limits will apply to open positions as well as new positions, so please ensure you have sufficient funds on your account to meet the new margin requirements for open positions before Monday 29th March. If you do not have sufficient funds to cover the new margin requirements, you will be automatically closed out when the market opens.
How much margin will I need?
Your margin requirement will depend on what market you are trading and the size of your trade. Eg EURUSD will have 1:30 leverage so the margin requirement for 0.10 lot will be:
0.10 lot * 100,000 = €10,000
€10,000/30= €334 Margin Required
What are the new leverage limits?
Who is affected by the changes?
The new leverage limits and negative balance protection rules only apply to Retail clients. Wholesale clients are not affected by the new changes. Currently you are classified as a retail client, however if you satisfy certain criteria, you may be eligible to opt up to become a wholesale client.
If you believe you meet the requirements and want to enquire about opting up to a wholesale client status, please contact support@fxopen.com.au.
If you have any questions regarding these changes or require assistance in calculating your new margin requirements, please do not hesitate to contact us.