eToro reminds its Australian clients about new CFD rules
Online trading company eToro reminds its Australian clients of the new rules for trading CFDs that will come into effect on March 29, 2021.
As FX News Group has reported, the Australian Securities and Investments Commission (ASIC) has issued Product Intervention Order, which introduces changes and new restrictions on how CFDs can be traded by retail clients.
Many of the new protections being introduced are already provided by eToro AUS Capital Pty Ltd to its retail clients. The following conditions will apply to all retail clients of eToro AUS from 29 March 2021:
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Leverage restrictions
These changes will only affect new positions from 29 March 2021. All existing positions opened prior to 29 March 2021 will not be affected. Any orders with leverage exceeding the new restrictions that are set to open after the new restrictions are applied will be cancelled. eToro warns that it may decide to apply the new leverage restrictions up to a week before the 29th March 2021 deadline.
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Margin close-out protection
If the total equity in your account falls below 50% of the margin required for all your open CFD positions, one or more of your CFD positions will be automatically closed out as soon as market conditions allow. This condition will come into effect on 29 March 2021. eToro AUS already provides this protection to all retail clients.
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Negative balance protection
A retail client’s CFD losses will be limited to the funds in their CFD trading account. This condition will come into effect on 29 March 2021. eToro AUS already provides this protection to all retail clients.
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Prohibitions on inducements
Certain benefits cannot be given or offered to retail clients as they could be considered to be an inducement to open, acquire or fund a CFD account or trade CFDs. This condition will come into effect on 29 March 2021.
Traders can find more information on this matter here.