ESMA’s new requirements consist of reducing available leverage limitations for Retail clients of financial organizations. New limitations depend on the volatility of an underlying asset and are the following:
Major Currency pairs - up to 1:30.
Non-major Currency pairs, Gold, major Indices - up to 1:20.
Commodities, other than Gold, non-major Indices - up to 1:10.
Other individual assets - up to 1:5.
Cryptocurrencies - up to 1:2.
Apart from the changes of the leverage limitations, financial organizations will be obliged to provide on a per account basis Margin Call and Stop Our features, on a per account basis Negative balance protection, and implement the standardized risk warning.