CFD Leverage Restriction and easyMarkets' Answer
Some industry experts have said that ESMA's latest set of regulations will completely redefine the European retail CFD environment. The significant restriction of leverage, the minimum margin requirement increase, and the complete prohibition of binary options have received mixed reactions.
Some brokers, including easyMarkets, welcomed the new parameters set by ESMA and promised to comply to them. Others have said they will comply with the regulations but do not agree with the - in their own words - "draconian" measures.
No matter what happens or what the reactions were, the truth is that the new rules set forth by ESMA have the ultimate purpose to protect traders - and easyMarkets not only supports that, it also promotes responsible trading practices as part of the benefits it offers its clients. Negative balance protection, free guaranteed stop-loss and take profit are standard risk management features on all easyMarkets accounts.
Now easyMarkets has launched yet another tool traders can add to their arsenal against risk. easyTrade allows the client to set the maximum risk they are comfortable with. No matter what happens on the markets - this is the only amount at risk.
if the markets are moving in the trade's benefit -
this unique and innovative trading product - does
not cap the trade's potential. It also allows for zero spreads and no margin
requirement trading. This helps minimize the cost which is conveyed to the
trader when on the markets.
easyTrade: How does it work?
You are probably wondering how easyMarkets can offer these features - while still staying compliant with all of the current and the new regulations. The underlying financial product that easyTrade is built on, vanilla options, is extremely robust and features all the same conditions easyTrade does. The problem is that vanilla options can be complex and appropriate for advanced traders.
After many months of development and troubleshooting, we managed to preserve these very attractive benefits but in a simplified and user-friendly way.
Trades using easyTrade can be performed in just three steps - set your maximum risk, choose the time duration of your trade and decide whether the rate will go up or down. At first glance, this simplicity might seem like something that would only benefit novice traders. This is true of course but easyTrade can also benefit advanced traders due to immediacy.
Since the risk is known, there is no need to calculate and set stop-out levels to manage your trade's risk. This lends a different level of immediacy and the ability to place a trade quickly when market conditions change rapidly. Another benefit is using easyTrade as a hedge during moments of volatility.
easyMarkets has been innovating since its founding in 2001, and easyTrade is the latest addition of our roster of tools that help our clients manage their risk, trade without unnecessary complexities and have an exceptional trading experience.
- This is a press release provided by easyMarkets.com