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ASIC falls into line with ESMA

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New leverage caps announced by the Australian regulator.

  https://theforexreview.com/2020/10/23/australias-asic-announces-leverage-cap-negative-balance-protection/

 

- 1:30 leverage for CFDs on major currency pairs made of Australian, Canadian or US dollar, British pound, euro, Japanese yen and Swiss franc
- 1:20 leverage for CFDs on minor currency pairs made of any currency pairs excluding the major currency pairs, gold or a major stock market index, for example, CAC 40, DAX, Dow Jones Industrial, etc.
- 1:10 for CFDs on commodity or minor stock market index
- 1:5 for CFDs on shares and other assets;
- 1:2 for CFDs on crypto-assets

  • Thought provoking 1

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Wow ok, I feel that was a bit too heavy handed but the negative balance protection will be good for times like the swiss franc shock a few years back, and oil crashing this year.

I wonder if brokers will put trading fees up to compensate.

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ASIC’s product intervention order will be live on From 29 March 2021

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