Japanese regulator considers leverage reduction from 25:1 to 10:1 | Forex Factory

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Japanese regulator considers leverage reduction from 25:1 to 10:1

  • #1
  • First Post: Sep 28, 2017 7:48pm Sep 28, 2017 7:48pm
The Japanese regulator is considering a reduction of leverage from 25:1 to 10:1 for retail customers.

We witnessed a drop of leverage from the regulator before and that impact was short lived as the brokers found that their customers weren't using the full leverage anyway and the broker volumes didn't change .

The Japanese are world leaders when it comes to retail fx and it will be interesting to see which regulator follows.
  • #2
  • Sep 29, 2017 8:05am Sep 29, 2017 8:05am
there is a big push worldwide to flush out spot forex trading
  • #3
  • Sep 29, 2017 12:58pm Sep 29, 2017 12:58pm
Quoting PoundTrader
there is a big push worldwide to flush out spot forex trading

Not really - it's only a really a big, worldwide push to flush out non-regulated/poorly-regulated, scammy spot forex trading, in which the client is subjected to barrages of dishonest marketing hype, isn't at all well protected, and so on - and from the retail trader's perspective that's actually a good thing, too.
  • #4
  • Sep 29, 2017 1:18pm Sep 29, 2017 1:18pm
Quoting PoundTrader
there is a big push worldwide to flush out spot forex trading
No leverage No Forex. Simple. Such leverage good for stock markets not in Fx.
Never Gamble Forex
  • #5
  • Sep 30, 2017 8:34am Sep 30, 2017 8:34am
Quoting yesyoucan
{quote} No leverage No Forex. Simple. Such leverage good for stock markets not in Fx.
you should change your leverage with your broker 1:1
  • #6
  • Sep 30, 2017 1:27pm Sep 30, 2017 1:27pm
Quoting PoundTrader
you should change your leverage with your broker 1:1

He didn't say leverage was bad for forex. He said "such leverage" (meaning, I think, "the kind of leverage widely available to gullible beginners" - some counterparty brokers give 1000:1 leverage). And he's right.
  • #7
  • Sep 30, 2017 5:57pm Sep 30, 2017 5:57pm
Quoting Quickly
{quote} He didn't say leverage was bad for forex. He said "such leverage" (meaning, I think, "the kind of leverage widely available to gullible beginners" - some counterparty brokers give 1000:1 leverage). And he's right.
let him explain. thank you
  • #8
  • Last Post: Oct 4, 2017 6:24am Oct 4, 2017 6:24am
Well, since the majority of retail traders are investing somewhere between $500 - $1000, such thing as retail FX trading simply will be non-existent with leverage level of 1:10. It is just too ineffective for them.
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