Finra said it plans increased margin requirements for leveraged funds and uncovered options tied to the funds starting Dec. 1.

Margin requirements for ETFs and options will be increased “by a factor commensurate with their leverage,” according to the Financial Industry Regulatory Authority. The current margin requirement is typically 25% of the market value of a long ETF and 30% for a short ETF.

New margin requirements will not exceed 100% of the market value, according to Finra. Finra has already taken steps to warn brokers and investors leveraged ETFs can be tricky for inexperienced traders to handle.

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