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05Jun2018
European restrictions on CFD trading and binary options take effect
The European Securities and Markets Authority (ESMA) have negotiated measures in relation to the provision of CFDs and binary options to retail investors in the European Union (EU). We would like to inform you that these measures will not apply to professional investors. If you want to understand the criteria for qualifying as a professional investor, you can contact us at forex@karoll.bg or at 02/4008 242.
The following measures come into force:
1. Binary options (effective July 2, 2018) - prohibition of the marketing, distribution or sale of binary options to retail investors;
2. Contracts for Difference (effective from August 1, 2018) - Restrict the marketing, distribution or sale of CFDs to retail investors. The limitation includes: thresholds for the use of leverage when opening a position; margin cancellation rule on the basis of the account; safeguards against a negative balance based on the bill; prevent the use of incentives by the CFD vendor; and a strict risk-specific warning through standardized formulation.
ESMA also negotiated intervention measures for trading financial products. You can see the complete list of measures here.
