Please be advised that the European Securities and Markets Authority (ESMA) has formally adopted new measures for the provision of contracts for difference (CFDs) to retail customers. Further details regarding this announcement can be found here.
These measures apply to trading service providers regulated in EU jurisdiction such as NFX Capital CY Limited, and will apply from 1st August 2018. In accordance with these measures, we will be making changes to our product leverages, changing the Margin Closeout percentage which is effective on your trading account, and also continue to offer negative balance protection.
The ESMA measures call among others for the following restrictions to be implemented:
i. Leverage Limits for CFDs offered to Retail Clients:
In this context, the offered leverage ratios to all retail clients to whom higher ratios are currently offered, will be changed from 1 August 2018 to the ones described above. For others they will remain the same.
Also, please note that the margin level at which the platform will start closing open positions automatically starting from the most unprofitable position, will change from 1 August 2018 from 40% to 50%.
The negative balance protection (NBP) offered by the Company according to which an investor cannot lose more than the deposited funds, will continue to be in effect.
Additionally, please also be advised that the above changes apply to clients categorised as ‘Retail Clients’ in accordance with our Client Categorisation Policy. Depending on your personal circumstances, some clients may be eligible for recategorization as a ‘Professional Client’, in which case the above changes would not apply (however you should be aware that certain protections are waived). For further details of the eligibility requirements for Professional Clients, please refer to our Client Categorisation Policy.
Risk Warning: CFDs are complex instruments and come with a high risk of losing your invested capital rapidly due to leverage. 79.66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the risk of losing your invested capital. If you do not fully understand the risks involved, please seek independent advice. For a better understanding of complex financial products please click here.
NFX Capital CY LTD does not provide financial services to the residents of USA, Canada, Japan, Belgium and other additional jurisdictions.