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Regulation & safety

ESMA Leverage Limits

By Jarosław Wasiński • Published: • Updated:
The retail CFD leverage ceilings introduced in ESMA’s 2018 intervention: 30:1 for major currency pairs; 20:1 for non-major pairs, gold and major indices; 10:1 for other commodities and non-major indices; 5:1 for individual equities and other reference values; and 2:1 for cryptocurrencies. ESMA’s temporary measures expired in July 2019 after national measures were introduced. Check the applicable national rules, product and client category.
Example.

Hypothetical major-pair exposure of EUR 30,000 at a 30:1 cap requires EUR 1,000 initial margin. A 20:1 cap for the same exposure requires EUR 1,500. These are minimums under the assumed model; a broker may require more.

Instrument classifications

ESMA's major-pair definition requires two currencies from a specified set, not any popular pair. Gold, indices, equities and cryptoassets have separate caps. Determine the product's classification before calculating.

Margin versus cash risk

A cap governs exposure relative to required margin. It does not specify stop-loss risk or a safe capital percentage. Spread and changing notional values can affect ongoing requirements.

Applicable national rules

National measures replaced ESMA's temporary intervention. Poland includes a separate experienced-retail category; this is not a general European professional category. Check current law, service, residence and agreement.

Primary source checked 11 October 2026: www.fca.org.uk.

FAQ

Does 30:1 require using maximum leverage?

No. It is a cap within the relevant regime; size and capital determine actual exposure.

Do professionals always have the same cap?

No. Classification and local law affect coverage, while a provider can impose its own requirements.

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Jarosław Wasiński

Editor-in-chief, ForexMechanics.com • Macro & FX analyst

Independent analyst and practitioner with over 20 years of experience in financial markets. Actively involved in Forex since 2007, with a focus on fundamental analysis, OTC market structure, and disciplined capital risk management.

  • Creator and editor-in-chief of MyBank.pl, providing reliable financial education since 2004.
  • Author of hundreds of in-depth market commentaries, structural analyses, and educational materials for traders and investors.
  • Advocate for market transparency, promoting education grounded in hard data and institutional reports (BIS, ESMA, CFTC).

All content is educational and informational only – it does not constitute investment advice or a recommendation. Remember: leveraged trading (Forex/CFD) carries a high risk of rapid capital loss.