Annoying Precision
Overseas brokers for US citizens: legal or illegal? 22 replies
Any brokers offering high leverage accounts to US citizens? 22 replies
Broker offering penny accounts to US citizens? 1 reply
I am not able to create virtual accounts anymore 7 replies
CFTC NEW Document - Overseas Accounts OK? 58 replies
DislikedThe legislation would be effective for practical reasons, no-one needs to use 100:1 leverage, it's ludicrous, it's financial suicide as many have found out at their expense!
Brokers use 100:1, 200:1, 400:1 as a marketing tactic to entice the gullible through the door, that's all it is, in practical trading terms it has absolutely no value or benefit whatsoever.Ignored
DislikedAgreed, but it does help those of us with some sense for money mgmt, a low entry fee into the sport.
BTW, thew leverage as absolutely nothing to do with the retail trader's failure rate; only the speed at which it happens. Even at 1:1 we couldn't trade our way out of a wet paper sack.Ignored
DislikedIt will protect vulnerable traders. Those who need the most protection are always the ones who don't even realise they need such safe-guarding.
There is legislation in place to protect consumers as they enter into other types of financial transactions: mortgages, credit cards, personal loans, investments etc... Granted that some of it is far from efficient. However, the legislation is in place, because people do not always fully understand the risks of the transactions they are signing up to.
This is the same reason, in my opinion, why retail...Ignored
DislikedThat's an impossible contradiction. No one with any sense of money management would ever consider using anywhere near 100:1 leverage.Ignored
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Smart legislation would be regulating the leverage for new-comers or those that havent proved themsevles.Ignored
DislikedYou don't know what you don't know otherwise you'd know it!
Evidently not everyone has the capacity to work some things out for themselves, they need a helping hand. Couple that with marketing tactics and it's easy to get led astray, hence legislation from those that do know.Ignored
DislikedThose that have proved themselves would never contemplate using such high leverage, they've learnt and probably experienced the unfortunate results of it first hand.
I'm open to being converted though, could you give a practical example of a hypothetical 100:1 trade, the effective leverage used and the risk? That's not a challenge by the way, I'm genuinely interested in how you guys look at it.Ignored
DislikedThose that have proved themselves would never contemplate using such high leverage, they've learnt and probably experienced the unfortunate results of it first hand.
I'm open to being converted though, could you give a practical example of a hypothetical 100:1 trade, the effective leverage used and the risk? That's not a challenge by the way, I'm genuinely interested in how you guys look at it.Ignored
DislikedIt's a case of acknowledging the presence of the known-knowns, the unknown-knowns and, let's never forget, the unknown-unknowns. Simple really!Ignored
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I'ts because of the capitilization factor, nobody wants to hold more money in their account then they have too.Ignored
DislikedAgreed, but it does help those of us with some sense for money mgmt, a low entry fee into the sport.
BTW, thew leverage has absolutely nothing to do with the retail trader's failure rate; only the speed at which it happens. Even at 1:1 we couldn't trade our way out of a wet paper sack.Ignored
Dislikedlol, I was just thinking the same thing! At first I thought they were just joking around but I think they're actually serious!
I imagine the authorities are satisfied they're making the right decisions, justification by the truck load looking at some of the responses mailed in!Ignored
DislikedIt will protect vulnerable traders. Those who need the most protection are always the ones who don't even realise they need such safe-guarding.Ignored
DislikedIf the government is going to regulate leverage like that, then why not regulate what we can or can't buy? Like if we are thinking of buying a new car, but really can't afford it, then the government should step in and stop us saying our debt payments to net cash flow will be too high - sorry, you can't buy that car. Or this cheeseburger will make you too fat so right now you can only eat this diet bar. Or this movie is too political so you can't watch it - it's been censored. Or we don't think this book is good for the people, so it is banned and...Ignored
DislikedIf the government is going to regulate leverage like that, then why not regulate what we can or can't buy? Like if we are thinking of buying a new car, but really can't afford it, then the government should step in and stop us saying our debt payments to net cash flow will be too high - sorry, you can't buy that car. Or this cheeseburger will make you too fat so right now you can only eat this diet bar. Or this movie is too political so you can't watch it - it's been censored.Ignored
DislikedOr this movie is too political so you can't watch it - it's been censored. Or we don't think this book is good for the people, so it is banned and all copies will be burned. This is just one of many steps to an oppressive government, but by the time people realized what is going on it will be too late.Ignored
Dislikedwhether to use leverage and how much to use leverage is a personal choice. How much leverage to use when trading a particular investment instrument is not anybody's business but the traders'. It's up to the traders to decide how much and how and when to use leverage in their trading business. It's their trading business, their trading venture, CFTC or NFA or anybody has no business in there!!............Ignored
DislikedIt's not so much a matter of being scared of leverage, in fact it's a calculation I rarely bother to look at because it's pretty meaningless on it's own.Ignored