Leverage for non-qualified investors in forex market to be limited
For non-qualified investors making trades with a forex dealer, a leverage ratio will be calculated based on each currency pair, and it must be lower than the statutory level 1:50. This is specified in the updated Basic Standard for Forex Dealer Transactions in the Financial Market.
It was developed by the SRO Association of Forex Dealers, approved by the regulator and will be effective from 1 October 2021.
The standard sets a leverage calculation formula. Forex dealers will have the right to make contracts with non-qualified investors on condition that the amount of collateral needed for access to trading is calculated on each trading day based on exchange rate fluctuations over the past year. The new requirements are intended to protect investors against sharp currency fluctuations and potential loss of financial investments.