The Bank of Russia has no plans to impose a margin trading ban on inexperienced investors (trading with borrowed funds). This was stated during the Moscow Financial Forum by the head of the service for protecting consumer rights and ensuring the availability of financial services of the Bank of Russia, Mikhail Mamuta. Wrote agency TASS.
According to him, the regulator is in favor of better informing investors about risks.
“There are types of trades that don’t work at all without margin trading. That is, if a person has access to these transactions, they should have access to margin trading. The main thing is that (the person) understands that this is margin trading and the consequences of taking the appropriate “shoulder” risk,” he said.
Mamuta explained that not all investors understand that brokers offer them a leveraged deal. He also said that the newcomer should confirm that he understands what is at stake, for example, through testing.
Leveraged trading means trading with money borrowed from a broker. This is margin trading. In this case, the investor faces the risk of losing the borrowed funds.
At the end of June, Mamuta said the regulator plans to reduce margin trading risks for novice investors.
20 July Mammoth declarationunqualified investors may be temporarily prohibited from increasing their positions in foreign securities.
Source: Gazeta
Jackson Ruhl is a tech and sci-fi expert, who writes for “Social Bites”. He brings his readers the latest news and developments from the world of technology and science fiction.