Estonia based Retail FX brokerage group Admiral Markets has announced that in line with the French CFD regulatory requirements it will now offer a new account type called Admiral.RisqueLimité, designed with an emphasis on protection of retail clients from risks connected to trading in the financial markets.
The account is being offered via the company’s FCA regulated subsidiary Admiral Markets UK Ltd, which has MiFID passport rights into the French retail trading market.
The features of the account include:
1. Mandatory Stop Loss
As prescribed by french regulator Autorité des Marchés Financiers (AMF), retail brokers offering advertised trading to retail clients in France must include an option of a mandatory Stop Loss order. Additionally, any losses resulting from trading may not exceed the monetary value of the margin reserved for a particular position.
Admiral.RisqueLimité meets this regulatory requirement and provides the option to trade on an account with a Stop Loss order calculated and placed automatically whenever a client opens a position. Stop Losses on this account cannot be cancelled or moved away too far from the opening price, so in case the Stop Loss is triggered, the resulting loss never exceeds the maximum value determined by the value of margin collateral for the position.
2. Limited Maximum Leverage
As recommended in the notice made by the European Securities and Markets Authority (ESMA) on 27 March 2018, all retail clients in Europe and in the UK will be provided with the limited maximum leverage, in order to reduce the risks connected to margin trading.
Admiral.RisqueLimité was made with anticipation of the above measures to be applied on a permanent basis in the EU, so that the leverage rates provided on this account already reflect the maximum rates proposed by the ESMA:
- 1:30 on major currency pairs and 1:20 on other FX instruments;
- 1:20 on gold spot CFD and CFDs on major stock indices.
3. Negative Balance Protection
Admiral.RisqueLimité provides full and unconditional compensation of negative balances, which may result from time to time when a client has a position on a leveraged product and the market moves abruptly against it.
4. 100% Stop Out Level and Additional Protection Against Price Slippage
Admiral.RisqueLimité provides the level of liquidation of open positions (Stop Out) equal to 100% of the reserved margin collateral. And, similarly to Stop Loss orders, Stop Outs are always processed with zero slippage.
5. Volatility Protection Settings
Admiral.RisqueLimité also provides an additional layer of protection with Admiral Markets’ Volatility Protection settings, which represent a set of conditional orders aimed to address typical issues connected to market volatility.