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Attachments: Could 10:1 be the new leverage in US Forex?
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Could 10:1 be the new leverage in US Forex?

Didn't the NFA propose something similar recently, and wasn't it determined that in order to keep USA based brokers competitive, 100:1 is needed?

http://www.nfa.futures.org/news/.%5C...Notc021909.pdf

Why is this coming up again now? We all need to speak out against this nonsense. There are two ways to contact them online, given here.

http://www.cftc.gov/ucm/groups/publi...esproposal.pdf

Firing off a short, to the point email will take no time at all, and they actually requested input from the public, so lets give it to 'em!
10:1 = death of retail forex in the US

Ask any full time trader if 10:1 is enuf ????
Not can they trade with 10:1 but would they choose to !, i dont want to have all my trading funds in my bloody FX account thank you very much.
What???? 10:1! they must be kidding me......
I don't mind...already trading at 1:25,so what can I do,I just play by the rules other people make.
And besides,I am sure most of the real trader here won't have a problem with this also.
Quoting watchtower4x
I hear alot about options but CME is just another "bucket shop" from my experience talking to their "customer service".
CME is a bucket shop ?! , CME is an exchange not a marketmaker
I think 100:1 is too risky , also 10:1 is low for small traders , but anyway if u trade Euro u can trade Euro fx futures one contract = 125000 E and the margin is 1100 $ , ofrcourse this is not a solution if u want to trade G/J and many other crosses , i guess we all know now why 95% lose , it is leverage , i dont agree with 10:1 but also 400:1 and even 100:1 is too risky ...
Quoting tar
I think 100:1 is too risky , also 10:1 is low for small traders , but anyway if u trade Euro u can trade Euro fx futures one contract = 125000 E and the margin is 1100 $ , ofrcourse this is not a solution if u want to trade G/J and many other crosses , i guess we all know now why 95% lose , it is leverage , i dont agree with 10:1 but also 400:1 and even 100:1 is too risky ...
Leverage is misunderstood by most traders. 400:1 is no more risky than 10:1. I have always traded with the highest leverage that brokers allow. I do not risk more because of the available leverage. What it allows me to do is when a trade is funded (i.e. stop at break even) it gives me the ability to open another trade if I want. Where people get burned on leverage is they risk more because they see that they can buy more.
Quoting tar
I think 100:1 is too risky , also 10:1 is low for small traders , but anyway if u trade Euro u can trade Euro fx futures one contract = 125000 E and the margin is 1100 $ , ofrcourse this is not a solution if u want to trade G/J and many other crosses , i guess we all know now why 95% lose , it is leverage , i dont agree with 10:1 but also 400:1 and even 100:1 is too risky ...

That's fine for you, for me, it's none of the "GUVMINTS" damn business what leverage I want to use. Personally I use no more than 50:1. Most of the time it's probably 25:1 or 30:1.

If I want to throw my mortgage payment down on a football game, play blackjack, buy powerball tickets, or trade currency....I don't need the f'ng "GUVMINT" trying to protect me from myself!

If anything protect me from the f'ing lunatics in Washington that dig in my damn pocket every time I bend over!
Quoting tar
I think 100:1 is too risky , also 10:1 is low for small traders , but anyway if u trade Euro u can trade Euro fx futures one contract = 125000 E and the margin is 1100 $ , ofrcourse this is not a solution if u want to trade G/J and many other crosses , i guess we all know now why 95% lose , it is leverage , i dont agree with 10:1 but also 400:1 and even 100:1 is too risky ...
Leverage in and of itself does not increase risk. Leverage is simply a tool that allows you the potential for faster gains. Along with that comes an equal potential for faster losses. The higher the available leverage, the quicker you can be successful, provided you know what you're doing.
Exactly Magnum and Lion.
Quoting magnumfreak
Leverage is misunderstood by most traders. 400:1 is no more risky than 10:1. I have always traded with the highest leverage that brokers allow. I do not risk more because of the available leverage. What it allows me to do is when a trade is funded (i.e. stop at break even) it gives me the ability to open another trade if I want. Where people get burned on leverage is they risk more because they see that they can buy more.
Ofcourse if u risk 0.5% - 1.5 % only in everytrade even if u use 400:1 broker thats fine , but thats u , most of these new traders will jump in and when they chase losses they will use the whole leverage to get their revenge !
Quoting tar
Ofcourse if u risk 0.5% - 1.5 % only in everytrade even if u use 400:1 broker thats fine , but thats u , most of these new traders will jump in and when they chase losses they will use the whole leverage to get their revenge !
Absolutely agree. Most new traders lack the discipline to trade with 400:1 available.
Well, if a majority of retail traders had been making money up to the potential of the forex market.... then, crikey, I think they would have shut this thing down some time ago.

As it is, people are opening accounts with $50.

If they could just get more people losing $5000 accounts, then.... hey, that's a good enough reason to cut out the leverage.
Quoting GulfCoastPip
That's fine for you, for me, it's none of the "GUVMINTS" damn business what leverage I want to use. Personally I use no more than 50:1. Most of the time it's probably 25:1 or 30:1.

If I want to throw my mortgage payment down on a football game, play blackjack, buy powerball tickets, or trade currency....I don't need the f'ng "GUVMINT" trying to protect me from myself!

If anything protect me from the f'ing lunatics in Washington that dig in my damn pocket every time I bend over!
BTW i dont have any penny with US brokers , i am thinking to fund my Oanda account , but even Oanda will not be a problem even they lower leverage to 10:1 cuz they will open an office in Canada ...
Quoting Lionstrike
Leverage in and of itself does not increase risk. Leverage is simply a tool that allows you the potential for faster gains. Along with that comes an equal potential for faster losses. The higher the available leverage, the quicker you can be successful, provided you know what you're doing.
U said it yourself "If u know what you are doing " , i agree if u know what u r doing and u dont gamble by risking too much and u know how to trade then u use 100:1 broker thats ok but 95% seems dont know whats going on ...
Quoting tar
I think 100:1 is too risky , also 10:1 is low for small traders , but anyway if u trade Euro u can trade Euro fx futures one contract = 125000 E and the margin is 1100 $ , ofrcourse this is not a solution if u want to trade G/J and many other crosses , i guess we all know now why 95% lose , it is leverage , i dont agree with 10:1 but also 400:1 and even 100:1 is too risky ...
So what if they want to use 400:1, 100:1 or 1:1. If not FX it's Powerball, Monday Night Football, Poker with the guys, strippers, etc...!

It's not the "GUVs" responsibility to protect people from themselves. If anything stop the stupid ones from breeding!
haha, i agree ! also, they should shut down all casinos across the country ! shut down every single casino in Vegas ! they have PENNY slots.... PENNY slots !!! they take ALL of peoples money.... whos is going to protect them !


Quoting GulfCoastPip
So what if they want to use 400:1, 100:1 or 1:1. If not FX it's Powerball, Monday Night Football, Poker with the guys, strippers, etc...!

It's not the "GUVs" responsibility to protect people from themselves. If anything stop the stupid ones from breeding!
Quoting GulfCoastPip
So what if they want to use 400:1, 100:1 or 1:1. If not FX it's Powerball, Monday Night Football, Poker with the guys, strippers, etc...!

It's not the "GUVs" responsibility to protect people from themselves. If anything stop the stupid ones from breeding!
Maybe they r trying to protect Marketmakers who take the other side of the trade ...
Quoting GulfCoastPip
So what if they want to use 400:1, 100:1 or 1:1. If not FX it's Powerball, Monday Night Football, Poker with the guys, strippers, etc...!

It's not the "GUVs" responsibility to protect people from themselves. If anything stop the stupid ones from breeding!
hehe,yes thats funny,but unfortunately it the other way around as you might already know. They are happy when the stupid ones are growing in size,population wise.
Quoting Maxsmart
Well I guess we definitely need to fight this one they already got it down to 100:1.

good luck

but don't expect any outcome
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