Thank you. As the leverage is currently calculated against the future trading an index with a multiplier, that can have high impact on strategies if the funds must raise on the trading account or the market exposure must decrease.
That could decrease the VaR and boost the Darwin’s DD and profit.
Are the same leverage limits used for investor accounts and did Darwinex analyse the effects?
NDX is traded currently with 2 % which will raise to 5%. (Major Indices, currency pairs can be worse).
Currently I can trade 1 lot NDX with a 2k account and have about 700 bucks free margin, with the new rules 1 have to pay at least 500 bucks more for trading 1 lot and have no free margin. Currently the 50% margin call stop out will close my position with 650 bucks left, in future it will be closed with 1250 bucks left. The traders loss currently is 100 more than with the new ESMA rules. That’s what ESMA calls investor protection ️ , that the LP got 400 bucks more for the margin call stop out and the traders has to risk more money.
So wouldn’t it make sense to offer the trader a 30% stop out level on demand on his own responsibility?
Please correct my example if it is wrong.