Broker — IC Markets EU Leverage Limits (Retail)
Retail client leverage caps applied by IC Markets EU (icmarkets.eu) under ESMA regulations, enforced by CySEC. These limits apply to all CFD instruments available on the platform and directly affect position sizing and required margin in mi-casa.
See Broker — IC Markets EU + cTrader Open API for broker selection rationale, account type, and API details.
Regulatory Background
The European Securities and Markets Authority (ESMA) introduced product intervention measures that cap leverage for retail clients trading CFDs. IC Markets EU, regulated by CySEC (Cyprus), applies these caps uniformly across all retail accounts. Professional clients may apply for higher leverage, but mi-casa targets retail-level position sizing by default.
Leverage Caps by Instrument Category
| Financial Instrument (CFD) | Max Leverage (Retail) | Margin Required |
|---|---|---|
| Forex Majors | 1:30 | 3.33% |
| Forex Minors | 1:20 | 5.00% |
| Forex Exotics | 1:20 | 5.00% |
| Gold | 1:20 | 5.00% |
| Indices Majors | 1:20 | 5.00% |
| Commodities | 1:10 | 10.00% |
| Metals (non-gold) | 1:10 | 10.00% |
| Energies | 1:10 | 10.00% |
| Futures | 1:10 | 10.00% |
| Indices Minors | 1:10 | 10.00% |
| Bonds | 1:5 | 20.00% |
| Shares | 1:5 | 20.00% |
| Cryptos | 1:2 | 50.00% |
Margin Required =
1 / leverage— e.g. 1:30 → 3.33% of notional must be held as margin.
Tracked mi-casa Symbols
The five symbols tracked in mi-casa map to the following categories and caps:
| Symbol | Instrument Type | Category | Max Leverage | Margin Required |
|---|---|---|---|---|
| EUR/USD | CFD Forex | Forex Major | 1:30 | 3.33% |
| XAU/USD | CFD Gold | Gold | 1:20 | 5.00% |
| WTI/USD | CFD Energy | Energies | 1:10 | 10.00% |
| BTC/USD | CFD Crypto | Cryptos | 1:2 | 50.00% |
| ETH/USD | CFD Crypto | Cryptos | 1:2 | 50.00% |
Leverage and Position Sizing in Practice
Leverage determines how much margin (collateral) must be set aside to open a position of a given notional size:
margin = notional / leverage
Example — EUR/USD (1:30): Opening a 1 standard lot position (100,000 EUR/USD notional) requires:
margin = 100,000 / 30 ≈ $3,333
Example — BTC/USD (1:2): Opening a position with $10,000 notional BTC exposure requires:
margin = 10,000 / 2 = $5,000
Key practical implications
- Crypto positions are capital-intensive. At 1:2, half the notional must be funded — treat BTC/USD and ETH/USD more like a spot allocation than a leveraged trade.
- Position sizing must account for available margin, not just the risk per trade (stop-loss distance × lot size). Both constraints must be satisfied simultaneously.
- Leverage caps are hard limits. The broker will reject orders that would take margin utilisation above the allowed threshold. Mi-casa’s paper trading engine should enforce these same caps to produce realistic simulations.
- Negative balance protection is required under ESMA rules — IC Markets EU cannot charge retail clients more than their account balance.
Related
- Broker — IC Markets EU + cTrader Open API — broker selection, account type, cTrader Open API
- OHLC Phase 2 — Actionability & Observability — paper portfolio feature where margin/leverage is applied
- OHLC Feature Enhancements — BTC/ETH symbol additions