Risk Warning: FX Trading & CFD trading involve a high level of risks, including capital invested
Following ESMA’s rules on the product intervention measures for trading financial instruments (see 2 below) by retail clients only, the Cyprus Securities and Exchange Commission (“CySEC”) on 27 September 2019, issued a Policy publishing the rules that restrict the sale, marketing and distribution of contract for differences (“CFDs”) in or from Cyprus in line with ESMA’s temporary product intervention measures.
Leverage limits apply on the opening of a position by a retail client from 30:1 to 2:1, which vary according to the volatility of the underlying asset:
For example, if you have an open position of 1 lot in EURUSD (at an open price of 1.1670) you are currently required to hold $233.44 in margin. After this date, that will increase to $3,890.
III. Negative balance protection on a per account basis. This means the limit of a retail client’s aggregate liability for all CFDs connected to a CFD trading account with a CFD provider to the funds in that CFD trading account.
Orbex does not allow clients’ balances to go in negative.
As point 1, above these measures apply to all retail clients (EU and Non-EU)
The above requirements vary for professional clients or eligible counter parties. Please read our Client Categorization policy for more information.
We are re-categorizing our existing clients to professional clients who meet two out of the three criteria in the Fitness Test as defined in the directive:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 44.44% of retail investor accounts lose money when trading CFDs with Orbex Ltd. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.