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ESMA and its implication

vontogr (togr)
Nov 16 2018 at 14:19
4862 postów
BTW ESMA should be over
Contracts for Differences (from 1 August 2018) - a restriction on the marketing, distribution or sale of CFDs to retail investors. This restriction consists of: 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 firm specific risk warning delivered in a standardised way
Next steps

MiFIR gives ESMA the power to introduce temporary intervention measures on a three monthly basis. Before the end of the three months, ESMA will review the product intervention measures and consider the need to extend them for a further three months.

At least I have not seen any decision to prolong it

AmDiab
Nov 27 2018 at 10:57
718 postów
togr posted:
BTW ESMA should be over
Contracts for Differences (from 1 August 2018) - a restriction on the marketing, distribution or sale of CFDs to retail investors. This restriction consists of: 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 firm specific risk warning delivered in a standardised way
Next steps

MiFIR gives ESMA the power to introduce temporary intervention measures on a three monthly basis. Before the end of the three months, ESMA will review the product intervention measures and consider the need to extend them for a further three months.

At least I have not seen any decision to prolong it


Thank you very much mate for your info. I really appreciate your effort! Have a good day, keep sharing your knowledge.

Matt (BluePanther)
Dec 16 2018 at 10:00
1355 postów
Greenwood posted:
I think 1:50 is enough leverage for most people. If you are good then you can still make money. If you then this will help you minimise losses


'Of course, the authorities believe that these regulations serve to limit the losses of bad traders (which they do, to an extent), but it is not the availability of leverage that wipes traders out – it’s the lack of education and discipline on the trader’s part.

In my view, the only real difference such regulations make is that instead of taking 3 months to wipe out a bad trader’s capital, it may now take 9 months. But the end result is still the same. Bad traders will keep losing until they improve. The availability of leverage has little to do with their losses.

Similar to the effect of diversification, reduced leverage protects losing traders while punishing the winning ones.'
- Christopher Lee, The Retail Forex Manifesto
https://www.pipmavens.com/i/principlefive/

Adribaasmet
Dec 17 2018 at 07:46
987 postów
Basically, a number of traders are interested on only higher trading leverage; although they don’t underrated the calculations on trading leverage.

vontogr (togr)
Dec 19 2018 at 11:20
4862 postów
I was always postulating the fact low leverage makes you lose money.
Nowadays got this confirmed. From whom? From ESMA itself:)
https://www.leaprate.com/forex/regulations/esma-admits-more-retail-cfd-traders-lost-money-after-leverage-cap/

AmDiab
Dec 24 2018 at 07:34
718 postów
togr posted:
I was always postulating the fact low leverage makes you lose money.
Nowadays got this confirmed. From whom? From ESMA itself:)
https://www.leaprate.com/forex/regulations/esma-admits-more-retail-cfd-traders-lost-money-after-leverage-cap/


Interesting; let me check the link 1st! I’ll share my feedback very soon to you! Thanks mate.

Tbone46
May 30 2019 at 14:31
3 postów
Hallo :-)

Somebody told me that ESMA are planing to force non-european brokers like the Australian brokers to the same conditions as the brokers in EU under ESMA for citizins of the EU.

Do anybody know anything about this or if its true or not at all?

Cause if can find anything about it on the web or on ESMAs homepage.

AniLorak
May 31 2019 at 15:55
920 postów
Maybe in near future the rule of ESMA would be more clear & effective but I see, till now many brokers don’t following the rules of ESMA.

LikeMustard
Jun 02 2019 at 06:34
10 postów
I have not read anything but it would not surprise me. If anyone has read anything please paste links here

Adribaasmet
Jul 30 2019 at 04:23
987 postów
LikeMustard posted:
I have not read anything but it would not surprise me. If anyone has read anything please paste links here


Read anything on what? On ESMA or anything else? Thanks in advance!

Aqissiaq
Jul 30 2019 at 09:41
11 postów
togr posted:
I was always postulating the fact low leverage makes you lose money.
Nowadays got this confirmed. From whom? From ESMA itself:)
https://www.leaprate.com/forex/regulations/esma-admits-more-retail-cfd-traders-lost-money-after-leverage-cap/



It is nuts that the EU just ignore the data that they do not like. So this proves that lower leverage is a bad idea and what to the EU do, they just carry on regardless.

AniLorak
Jul 30 2019 at 12:40
920 postów
Aqissiaq posted:
togr posted:
I was always postulating the fact low leverage makes you lose money.
Nowadays got this confirmed. From whom? From ESMA itself:)
https://www.leaprate.com/forex/regulations/esma-admits-more-retail-cfd-traders-lost-money-after-leverage-cap/



It is nuts that the EU just ignore the data that they do not like. So this proves that lower leverage is a bad idea and what to the EU do, they just carry on regardless.


Even; 1:30 is really too small! I think; retail traders need 1:100 trading leverage for trading!

SofieAndreasen
Sep 12 2020 at 10:51
736 postów
AniLorak posted:
Aqissiaq posted:
togr posted:
I was always postulating the fact low leverage makes you lose money.
Nowadays got this confirmed. From whom? From ESMA itself:)
https://www.leaprate.com/forex/regulations/esma-admits-more-retail-cfd-traders-lost-money-after-leverage-cap/



It is nuts that the EU just ignore the data that they do not like. So this proves that lower leverage is a bad idea and what to the EU do, they just carry on regardless.


Even; 1:30 is really too small! I think; retail traders need 1:100 trading leverage for trading!

Low leverage means low risk. Controlling risk is every important in trading. There are lot of losing money due to lack of risk management knowledge. ESMA are just trying to protect investor.

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