We need to consider the possibility the intent of the cftc may not be to push forex to 10:1. As I look through all the posts in this and other threads, I see most people take a position either for or against 10:1.
Put yourself in the position of a regulator. If you want to push a regulation through, and you make it extreme, then wouldnt the public be more accepting of a compromise position to a less extreme measure, say 25:1? Or even 50:1?
Considering the situation a year ago when the talk was about 2:1, this move towards 10:1 already seems like a softening to those of us who are naive enough to believe 10:1 is their true intent.
I think the objective is to reduce leverage this year, to whatever they can get without creating a new monster. Some traders are OK with 10:1. Some of us need 100:1. But we are all in this together. If we dont stand together and support each other on this now, we will all suffer separately at some point.
If you intend to respond to the cftc's request for comments, please make sure you think through what you want them to hear from you. Think about this from their point of view. Read the information that is currently available from the cftc and the various news outlets regarding the stated purpose of the proposed changes--"to combat fraud". Then take the time to compose a well thought out position that states 1) how this change will affect you personally--that is, will you have to increase your account sizes, will you have to lower your expectations from trading, or will you have to work at trading longer hours, etc in order to compensate for the change, and 2) suggest the cftc look at other methods to control fraud--that is, please dont penalize the people for whom the retail spot currency market was created in order to punish those who would use the forex markets in order to launder money obtained in an unlawful manner.
Put yourself in the position of a regulator. If you want to push a regulation through, and you make it extreme, then wouldnt the public be more accepting of a compromise position to a less extreme measure, say 25:1? Or even 50:1?
Considering the situation a year ago when the talk was about 2:1, this move towards 10:1 already seems like a softening to those of us who are naive enough to believe 10:1 is their true intent.
I think the objective is to reduce leverage this year, to whatever they can get without creating a new monster. Some traders are OK with 10:1. Some of us need 100:1. But we are all in this together. If we dont stand together and support each other on this now, we will all suffer separately at some point.
If you intend to respond to the cftc's request for comments, please make sure you think through what you want them to hear from you. Think about this from their point of view. Read the information that is currently available from the cftc and the various news outlets regarding the stated purpose of the proposed changes--"to combat fraud". Then take the time to compose a well thought out position that states 1) how this change will affect you personally--that is, will you have to increase your account sizes, will you have to lower your expectations from trading, or will you have to work at trading longer hours, etc in order to compensate for the change, and 2) suggest the cftc look at other methods to control fraud--that is, please dont penalize the people for whom the retail spot currency market was created in order to punish those who would use the forex markets in order to launder money obtained in an unlawful manner.