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ESMA Leverage Limits

Brokers & Regulation

Binding EU retail leverage caps (e.g. 30:1 on major pairs, 2:1 on crypto), introduced by ESMA alongside mandatory negative balance protection.

ESMA (the European Securities and Markets Authority) introduced binding leverage caps for retail clients trading CFDs across the EU in 2018 — typically 30:1 on major currency pairs, 20:1 on non-major pairs and gold, 10:1 on commodities and indices, 5:1 on individual shares, and 2:1 on cryptocurrencies. The measures also mandated negative balance protection and standardized risk warnings. Brokers regulated in the EU/EEA must apply these caps to retail clients, though eligible clients who qualify as "professional" can sometimes access higher leverage in exchange for giving up certain retail protections.

Related terms

LeverageMiFID IINegative Balance Protection

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After ESMA Leverage Limits

CalculatorMargin CalculatorCalculate the margin required to open a position at a given leverage, before you place the trade.GuideWhat Is Leverage and How Margin WorksA clear walkthrough of leverage and margin in forex trading — how they amplify gains and losses, what triggers a margin call, and why regulators cap retail leverage.
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