Editing European Securities and Markets Authority (ESMA) (section)

== ESMA and Crypto Futures Trading ==
Crypto futures trading involves speculating on the future price of cryptocurrencies like Bitcoin or Ethereum. ESMA has taken steps to regulate this market to protect retail investors and maintain market stability. Below are some key areas where ESMA impacts crypto futures trading:

=== Crypto Futures Regulations 2023 ===
In 2023, ESMA introduced new regulations to address the risks associated with crypto futures trading. These include:
* **Leverage Limits**: ESMA has capped leverage for retail investors to reduce the risk of significant losses.
* **Margin Requirements**: Traders must maintain a minimum margin to open and hold positions, ensuring they have sufficient funds to cover potential losses.
* **Transparency Rules**: Exchanges must provide clear information about fees, risks, and contract specifications.

These regulations aim to make crypto futures trading safer for beginners while maintaining market efficiency.

=== Risks of Crypto Futures Trading ===
ESMA emphasizes the risks involved in crypto futures trading, such as:
* High volatility leading to significant losses.
* Leverage amplifying both gains and losses.
* Market manipulation and lack of liquidity.

Traders are encouraged to educate themselves and use tools like [[crypto futures demo trading]] to practice before risking real money.