In relation to trading CFD contracts in Europe, the Authority changes the leverage in the range from 1:30 to 1:5, depending on the volatility of the underlying asset (the so-called historical price behavior). Also, the document sets standards for forced close out of the position (margin close out). That is, the stop out - level (in percent), when the provider is forced to close the client's position, will be the same for all traders with this asset.
Moreover, new measures of protection against negative balance are introduced. According to the regulator, this will provide a more guaranteed limit of possible losses to retail customers.
In addition, the European regulator is making crypto-currency instruments (CFD contracts) within the limits of these restrictions. Also, the ESMA regulator completely prohibits the trade in binary options in Europe.
My favorite broker ActivTrades provides its retail clients with options to mitigate these restrictions by opening a Professional Trading Account, or to open an account in ActivTrades' new Bahamas office.
