• Leverage limits on the opening of a position between 30:1 and 2:1, which vary according to the volatility of the underlying asset:
- 30:1 for major currency pairs;
- 20:1 for non-major currency pairs, gold and major equity indices;
- 10:1 for commodities other than gold and non-major equity indices;
- 5:1 for individual equities and any underlying not otherwise mentioned;
- 2:1 for cryptocurrencies;
• A 50% margin close-out rule on a per trading account basis;
• A Negative Balance Protection on a per account to all Retail Clients;
• A prohibition on benefits and incentivising trading;
• A standardised risk warning.
• By default Professional Client:
- A client required to be authorised or regulated to operate in the financial markets, including but not limited to credit institutions, investment firms and insurance companies
• A large undertaking meeting of two of the following size requirements on a company basis:
- A balance sheet total of 20,000,000 EUR or more;
- A net turnover of 40,000,000 EUR or more;
- Own funds of 2,000,000 EUR or more;
• A national or regional government, including a public body that manages public debt, central banks, international or supranational institutions.
• An institutional investor whose main activity is to invest in financial instruments.
• A large undertaking, including a partnership, a body corporate or an unincorporated association, which meet the relevant criteria.
• Elective Professional Client: A client must meet the requirements set by CySEC.
- A client must pass a “Qualitative test”, where we must assess their knowledge, experience and expertise with reference to the nature of the transactions or services envisaged, to ensure that they are capable of making their own investment decisions.
• A client must also complete a “Quantitative test” and satisfy 2 of the following criteria, where applicable:
- The client has carried out transactions in significant size and averaged a frequency of over 10 trades per quarter on the relevant market over the previous 4 quarters;
- The client has an investment portfolio and cash investments of over 500,000 EUR in value;
- The client is employed or had been employed in the financial sector for over a year in a professional position that requires knowledge of the transactions or services envisaged.
• The negative balance protection limits the maximum losses that a retail investor could have. It is designed as a backstop for cases when margin close-out does not work effectively as a result of a very sudden price movement.
• By introducing negative balance protection per account, the investor can never lose more than the total sum invested for trading CFDs. There can be no residual loss or obligation to provide additional funds beyond those in the investor’s CFD trading account.
• FOS – If you are an elective Professional Client who is not defined as a ‘consumer’, you will not have access to the Financial Ombudsman Service (FOS).
• Potential for higher leverage – You might be exposed to higher leverages that can amplify your losses.
• Investors Compensation Fund (ICF) – Professional Clients under Lirunex Limited (CySEC regulated) are not entitled to a compensation by the ICF. More information can be found in the Investor Compensation Fund Policy available In our website.
• Professional clients waive the Client Money Rules.