
19th July 2018
We write to notify you of changes to the Client Agreement and associated documents that govern your trading account with One Financial Markets that we have made as a result of the forthcoming European Securities and Markets Authority (ESMA) product intervention measures.
The changes will be effective from Sunday 29th July and you will be deemed to accept and agree to them unless you notify us to the contrary beforehand.
Summary of agreement changes:
Terms and Conditions | |
Clause | Description of change |
2.12 | Removal of reference to negative account balance |
2.17 | Liquidation level increased from 20 to 50% |
Order Execution Policy | |
Clause | Description of change |
2.7 | Clarification of the cost in terms of ‘core spread’ and spread mark up |
3.3 | Slippage information included for Take Profit and Stop Loss Order types |
4.2 | Confirmation that it is the Bid/Ask price on your account that is used for conversion rates |
New clause 7.2 | Confirmation that our products are not available outside the trading hours of the underlying market |
New clause 7.3 | Confirmation that larger trades are likely to receive wider spreads |
General | References to either Introducing Agent or Introducing Broker have been changed to “Introducer” |
It is important that you have read and understood all the terms and conditions concerned with your trading account so please familiarise yourself with the changes mentioned herein.
To view the new terms, please click here.
What is changing?
The ESMA measures include the implementation of a standard risk warning as well as a negative balance protection but most importantly,they also introduce maximum leverage limits and an increased liquidation level.
From 29th July, the liquidation level on your account will increase from 20% to 50% and the following leverage restrictions will apply:
Product | ESMA Leverage Restriction |
Major currency pairs* | 30:1 |
Non-major currency pairs | 20:1 |
Gold and major indices** | 20:1 |
Commodities (other than gold) and non-major equity indices | 10:1 |
Other products | 5:1 |
Cryptocurrencies | 2:1 |
*major currency pairs are defined as any pair comprising two of the following: US Dollar, Euro, Japanese Yen, Pound Sterling, Canadian Dollar or Swiss Franc.
**major indices are defined as: FTSE 100, CAC 40, DAX 30, DJIA, S&P 500, NASDAQ, NASDAQ 100, Nikkei 225, ASX 200, EURO STOXX 50
For a full product list and to compare existing and new margin rates please click here
Please note that if you meet the FCA’s criteria and elect to be treated as a professional client, the restrictions will not affect you and trading conditions on your account will remain unchanged. Please click here for more information.
What do these changes mean and what do I need to do?
The changes mean that you will have to hold considerably more money in your account in order to fund a position(s).
For example, on the current margin requirements, a 1 lot trade in EURUSD (at an open price of 1.1850) would require you to hold $296.25 in margin. After this date, the same trade will need $3,950.
Please note that your existing positions will not be affected; the new margin requirements will only be applied to new positions opened on or after the 29th July.
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