What you need to know
A key focus of the change is leverage restrictions, which will affect the amount of margin retail clients are required to deposit to trade CFDs or FX. Here's how the proposed changes look:
Changes to leverage caps
A key focus of the change is leverage restrictions, which will affect the amount of margin retail clients are required to deposit to trade CFDs or FX. Here's how the proposed changes look:
- 30:1 leverage on major currency pairs
- 20:1 leverage on major indices, gold and minor currency pairs
- 10:1 leverage on commodities (excluding gold) and minor indices
- 2:1 leverage on cryptocurrency assets
- 5:1 leverage on shares or other underlying assets
Compulsory margin close outs
If the funds you hold in your account fall to less than 50% of the margin required for all of your open trades, then we'll be required to close out positions.
Important: any existing positions opened prior to 29 March will also be subject to the new 50% margin close out requirement. This means that you may need to deposit more funds into your account to cover the additional margin required and avoid your positions being closed-out. It's your responsibility to be aware of your margin requirements and continue to monitor your positions.
Changes to leverage caps
A key focus of the change is leverage restrictions, which will affect the amount of margin retail clients are required to deposit to trade CFDs or FX. Here's how the proposed changes look:
- 30:1 leverage on major currency pairs
- 20:1 leverage on major indices, gold and minor currency pairs
- 10:1 leverage on commodities (excluding gold) and minor indices
- 2:1 leverage on cryptocurrency assets
- 5:1 leverage on shares or other underlying assets
Compulsory margin close outs
If the funds you hold in your account fall to less than 50% of the margin required for all of your open trades, then we'll be required to close out positions.
Important: any existing positions opened prior to 29 March will also be subject to the new 50% margin close out requirement. This means that you may need to deposit more funds into your account to cover the additional margin required and avoid your positions being closed-out. It's your responsibility to be aware of your margin requirements and continue to monitor your positions.
Compulsory margin close outs
If the funds you hold in your account fall to less than 50% of the margin required for all of your open trades, then we'll be required to close out positions.
Important: any existing positions opened prior to 29 March will also be subject to the new 50% margin close out requirement. This means that you may need to deposit more funds into your account to cover the additional margin required and avoid your positions being closed-out. It's your responsibility to be aware of your margin requirements and continue to monitor your positions.
Changes to leverage caps
A key focus of the change is leverage restrictions, which will affect the amount of margin retail clients are required to deposit to trade CFDs or FX. Here's how the proposed changes look:
- 30:1 leverage on major currency pairs
- 20:1 leverage on major indices, gold and minor currency pairs
- 10:1 leverage on commodities (excluding gold) and minor indices
- 2:1 leverage on cryptocurrency assets
- 5:1 leverage on shares or other underlying assets
Compulsory margin close-outs
If the funds you hold in your account fall to less than 50% of the total initial margin required for all of your open trades, there is a requirement to close out your positions.
Prohibition on inducements
Certain inducements to retail clients are prohibited (for example, offering trading credits and rebates or 'free' gifts like iPads). Some circumstances like as volume-based discounts, educational tools, information services or research tools will still be allowed.
Negative balance protection
Protect against negative account balances by limiting a retail client's CFD losses to the funds in their CFD trading account.When will these changes come into effect?
These changes are due to come into effect from 29 March 2021.You can read ASIC's announcement here.
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Will I be affected?
These highlighted changes will affect all retail clients trading with Pepperstone Group Limited, our ASIC regulated entity, from 29 March 2021.
What are my options?
Pepperstone is licensed in multiple jurisdictions. If you want to trade with a different entity that offers broader trading conditions, we offer an option to trade with another Pepperstone entity within our Group of companies.
This option remains entirely your choice and you're welcome to remain trading with Pepperstone Group Limited under the new regulations should you wish to. If you wish to find out more about your options, please feel free to contact us at support@pepperstone.com or call 1300 033 375.
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