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

  • #261
  • Jan 24, 2010 5:08pm Jan 24, 2010 5:08pm
Quoting tunera
I still don't understand, Why they've decided to cut the US retail fx levearge?

Same as the Gambling Sites they stopped, to stop US Money from being Lost over seas, well reduce!!
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #262
  • Jan 24, 2010 5:43pm Jan 24, 2010 5:43pm
Quoting Platypus
Oh boy...this guy is the perfect personification of Maxwell "smart"! Unfortunatelly he is not lucky enough to have a agent 99 around to fix his lack of understanding before he posts it.

Let me ask you something Mr (cough) smart.

Do you really believe that the demise of a whole bunch of petty cash accounts will affect the american GDP this year?

Oh boy! This guy thinks that the unemployment rate, GDP, tax collection, etc will be really impacted by forex retailers, specially the under capitalized ones!

Listen my friend.....you...
I guess you got back from your all nighter with the CFTC. Duh. It would affect the unemployment rate if you got rid of all retail trading. Its pretty obvious. Shut down TD ameritrade, Optionxpress, Scottrade, GFT Forex, FX Solutions, IG Markets, Alpari US, Ikon Global Markets, FXCM, CITI FX branch, etc. There are tons of retail trading entities. You'd be taking away jobs from marketers, salesman, computer technicians, janitors, analysts, administrative workers, thousands of people would lose their jobs lol. Not to mention each broker is worth at least 20 million in capital that would be leaving the U.S. Billions of dollars would leave the U.S. Your so naive platypussy stick your tongue up your own ass now
  • #263
  • Jan 24, 2010 7:52pm Jan 24, 2010 7:52pm
Quoting Maxsmart
I guess you got back from your all nighter with the CFTC. Duh. It would affect the unemployment rate if you got rid of all retail trading. Its pretty obvious. Shut down TD ameritrade, Optionxpress, Scottrade, GFT Forex, FX Solutions, IG Markets, Alpari US, Ikon Global Markets, FXCM, CITI FX branch, etc. There are tons of retail trading entities. You'd be taking away jobs from marketers, salesman, computer technicians, janitors, analysts, administrative workers, thousands of people would lose their jobs lol. Not to mention each broker is worth at...
I guess that so much profanity in your head really blocks any king of logical thinking..right "smart"?!

First of all, 90% of the brokers operating today will still be operating even when leverage goes to zero, in the near future. They are in a process of consolidating their clients right now, and that's good for them and for the trading industry in general. They will be smaller, more automated, productive and competitive. They do understand the meaning of "adapt or die".

The bucket shops will close and that's a good thing!

The petty cash accounts will take a hit but new forms of business will emerge to take advantage of this kind of "misplaced" money.

I believe a morphed institution could offer some kind of structured business where people trade in pools, lets say 50 accounts of 5 thousands each, Kind of sort of a sub-bucketshop or a very low end market maker acting almoust like one single trader or something along those lines, I have no precise ideauld be, it is waite and see.

Just take a look at the millions out of work right now, and the "trillions" that this purge cycle already imposed. Based in this kind of numbers let me ask you again.....

Do you really believe that the American (petty cash) retail forex demise will have a sensible (if any) impact on the current economy?
  • #264
  • Jan 24, 2010 8:30pm Jan 24, 2010 8:30pm
Quoting Platypus
I guess that so much profanity in your head really blocks any king of logical thinking..right "smart"?!

First of all, 90% of the brokers operating today will still be operating even when leverage goes to zero, in the near future. They are in a process of consolidating their clients right now, and that's good for them and for the trading industry in general. They will be smaller, more automated, productive and competitive. They do understand the meaning of "adapt or die".

The bucket shops will close and that's a good thing!

The petty cash...
Oh lil platypussy. all that poop on your tongue has you so confused Obviously it wont have a dire affect on our economy if the forex dealers move offshore and you spoke of all retail trade as well not just forex, but stocks, and retail futres and retail options and now your goin back to forex again. But, it doesn't make sense to get rid of a profit. The U.S. wont notice if retail forex is oblitereated but thousands will be out of work lil platypussy. No go get some soap for that tongue. As far as all retail brokerages, forex, stocks, futures, and options going out of business it would send the dow down dramatically when the next nfp hit. But once again its not the end of the world
  • #265
  • Jan 24, 2010 9:05pm Jan 24, 2010 9:05pm
Quoting Maxsmart
Oh lil platypussy. all that poop on your tongue has you so confused Obviously it wont have a dire affect on our economy if the forex dealers move offshore and you spoke of all retail trade as well not just forex, but stocks, and retail futres and retail options and now your goin back to forex again. But, it doesn't make sense to get rid of a profit....
Ok Mr "not smart" I think I'm better stop wasting my time with you. You are just about talking not having a productive discussion

Anyways...mark my words. This 10 to 1 may not materialize right now. They may settle at 25 to 1 or something around it, but the 1:1 leverage is coming, as bigger spreads, bigger commissions etc......... it is all coming!

Everything is following a trend and the forex market is not immune to it. For the next years things will be quite different, even the near past is still a lagging indicator. Position yourself to take advantage of the new new, adapt or die !!

Platypus out .........
  • #266
  • Jan 24, 2010 9:25pm Jan 24, 2010 9:25pm
Quoting Platypus
Ok Mr "not smart" I think I'm better stop wasting my time with you. You are just about talking not having a productive discussion

Anyways...mark my words. This 10 to 1 may not materialize right now. They may settle at 25 to 1 or something around it, but the 1:1 leverage is coming, as bigger spreads, bigger commissions etc......... it is all coming!

Everything is following a trend and the forex market is not immune to it. For the next years things will be quite different, even the near past is still a lagging indicator. Position yourself...
lol
  • #267
  • Jan 24, 2010 9:39pm Jan 24, 2010 9:39pm
http://www.thepetitionsite.com/1/for...-rin-3038-ac61
  • #268
  • Jan 24, 2010 9:48pm Jan 24, 2010 9:48pm
Quoting Platypus
Anyways...mark my words. This 10 to 1 may not materialize right now. They may settle at 25 to 1 or something around it, but the 1:1 leverage is coming, as bigger spreads, bigger commissions etc......... it is all coming!
.........
Hello Platypus, actually i think you are slightly pessimistic in your thinkings, the "trend" is going very nicely, everymonth there are many news in the retail-brokerage industry, and i mean new offers, new spreads, always better and better.
I don't think brokers will think now about make a bigger spread or bigger commissions etc.. because it's not how the free-market (in this case the brokerage market) work, nobody will let their clients trade with bigger spreads.

Relax, take it easy and don't worry soo much, there may be some us brokers that will adopt this 10:1 leverage rule, but there are soo many not-us brokers that don't give a shit to this "strange" new rule.
Trading will continue as in past, retail trading will continue to exist, becoming better and better as it is doing in these recent years.

Thank you very much
  • #269
  • Jan 24, 2010 9:49pm Jan 24, 2010 9:49pm
Quoting andy9775
http://www.thepetitionsite.com/1/for...-rin-3038-ac61
Good find, I have never seen so much oppostion to a proposed rule, and this is only the beginning of the second week open to comments. It's going to be fun reading the next batch of letters that they post.
  • #270
  • Jan 24, 2010 9:52pm Jan 24, 2010 9:52pm
Quoting tunera
Hello Platypus, actually i think you are slightly pessimistic in your thinkings, the "trend" is going very nicely, everymonth there are many news in the retail-brokerage industry, and i mean new offers, new spreads, always better and better.
I don't think brokers will think now about make a bigger spread or bigger commissions etc.. because it's not how the free-market (in this case the brokerage market) work, nobody will let their clients trade with bigger spreads.

Relax, take it easy and don't worry soo much, there may be some us brokers that...
LOL, actually the trend is for lower spreads, I don't know where this Nostradamus came from...too much history channel watching...he is probably now watching the 2012 program that he taped.
  • #271
  • Jan 24, 2010 9:58pm Jan 24, 2010 9:58pm
Quoting Platypus
Ok Mr "not smart" I think I'm better stop wasting my time with you. You are just about talking not having a productive discussion

Anyways...mark my words. This 10 to 1 may not materialize right now. They may settle at 25 to 1 or something around it, but the 1:1 leverage is coming, as bigger spreads, bigger commissions etc......... it is all coming!

Everything is following a trend and the forex market is not immune to it. For the next years things will be quite different, even the near past is still a lagging indicator. Position yourself...
I would not dismiss this threat. It is not funny!

Just look at who is making the final determination on this:

http://midclass.files.wordpress.com/...ast_supper.jpg

Tis is one Scarrrrrrrrrrrrrrrrrrrrrrrrrrrry group!


JUST SAY NO TO THE CFTC CLOWNS!

http://www.stknoxacademy.com/NoClowns.jpg


“An oppressive government is more to be feared than a tiger.”

http://thinkexist.com/i/sq/as4.gif Confucius
  • #272
  • Jan 24, 2010 10:04pm Jan 24, 2010 10:04pm
I received this from a colleague:

"To open a live Alpari (UK) account, first choose your trading account, trading platform and then tell us the nature of your account using the online form below.
Full details regarding our services can be found on our Trading Accounts or Trading Platforms pages.
Please make sure that you familiarise yourself with our Customer Agreement, Terms of Business and Risk Disclosure detailed in next step. You will also have the opportunity to print our application form and apply offline.
Due to global banking and regulatory restrictions, we are unable to process any applications from residents of the following countries / territories: United States (except Eligible Contract Participants), Sierra Leone, Equatorial Guinea, Afghanistan, Somalia, Cuba, Syria, Cote d'lvoire, Democratic Republic of the Congo, Zimbabwe, Sudan, Myanmar, Iraq, North Korea, Iran, Liberia and British Columbia (Canada). "

Notice the "nice" bunch of hell hole countries that we are lumped together with. That's just great!
Scarlett
  • #273
  • Jan 24, 2010 10:12pm Jan 24, 2010 10:12pm
Quoting Scarlett
I received this from a colleague:

"To open a live Alpari (UK) account, first choose your trading account, trading platform and then tell us the nature of your account using the online form below.
Full details regarding our services can be found on our Trading Accounts or Trading Platforms pages.
Please make sure that you familiarise yourself with our Customer Agreement, [b]Terms of...
yea, and look at who they define as "Eligible Contract Participants".



"Eligible contract participant

The definition of an Eligible Contract Participant includes financial institutions, insurance companies, commodity pools and wealthy individuals."

"
(xi) an individual who has total assets in an amount in excess of--

(I)

$10,000,000; or

(II)

$5,000,000 and who enters into the agreement, contract, or transaction in order to manage the risk
associated with an asset owned or liability incurred, or reasonably likely to be owned or incurred, by the


individual;"

Another attack on the common man.

Upper classes are a nation's past; the middle class is its future.
Ayn Rand


The only power any government has is the power to crack down on criminals. Well, when there aren't enough criminals, one makes them. One declares so many things to be a crime that it becomes impossible for men to live without breaking laws.
Ayn Rand
  • #274
  • Jan 24, 2010 10:21pm Jan 24, 2010 10:21pm
theres also another petition if anyone is interested. http://www.petition2congress.com/2/2...rin-3038-ac61/
  • #275
  • Edited 10:36pm Jan 24, 2010 10:22pm | Edited 10:36pm
Quoting Scarlett
I received this from a colleague:

"To open a live Alpari (UK) account, first choose your trading account, trading platform and then tell us the nature of your account using the online form below.
Full details regarding our services can be found on our Trading Accounts or Trading Platforms pages.
Please make sure that you familiarise yourself with our Customer Agreement, [b]Terms of...
Anybody that has an Alpari US account should close it and boycott Alpari. Wimps, in not allowing US Citizens to open Alpari UK accounts. Besides they trade against you, freeze you out at news time or during rapid movement, and give you constant requotes, so why would you want to use them?
  • #276
  • Jan 24, 2010 11:13pm Jan 24, 2010 11:13pm
Quoting Davidee
If you had a stop loss of 1% of the market's value (a tiny amount for a stop loss in my opinion)
EURUSD - 1.4160
1% = 141 pips

141 pip (1%) stop loss is a "tiny amount"? You must be a swing trader, that's a large stop for anyone trading on an intraday timeframe.
  • #277
  • Jan 24, 2010 11:21pm Jan 24, 2010 11:21pm
Quoting Platypus
but the 1:1 leverage is coming, as bigger spreads, bigger commissions etc......... it is all coming!


I love this troll entertainment.
  • #278
  • Jan 24, 2010 11:36pm Jan 24, 2010 11:36pm
Margin requirement fo US treasuy securities is 1% (at interactive brokers 6 month or less maturity)
100:1 because Bonds from the treasury are as good as cash.

Cash is as good as cash, isn't it?

Assuming 1/2 the small traders move offshore

This causes an outflow of US currency (to pounds or francs etc.) thus weakening the dollar

And half increase their account by 10X.
As for the enlarged accounts that money is now stagnant, not helping the economy at all. Not being spent, not being invested in production.

It's late and I read through the whole forum so I'm a little groggy.
I hope these add to the points any will make in their comments to CFTC
  • #279
  • Jan 25, 2010 12:27am Jan 25, 2010 12:27am
Quoting Davidee

I'd suggest that 2:1 is OK, 3:1 is OK, leverage at 5:1 is getting dodgy and 10:1 is likely to much.
This is a classic case of somebody thinking that their own way of trading is the only way that works. The fact is, some traders can trade effectively with 3-4 pip stops and hence easily make use of 100:1 leverage, but people like Davidee or whatever his name is can't accept that. After all, if he can't do it, how could anybody else possibly do it? Its quite ironic that many of the traders that act like they know so much about the market are such ineffective traders.
  • #280
  • Jan 25, 2010 7:49am Jan 25, 2010 7:49am
Quoting CurrencyAnalyst
The average U.S. citizen lives a finacially leveraged lifestyle to the helt of debt.
Haha yeah, they sure do that don't that! They do it here in the UK too, the end result isn't pretty.

But you're right about traders not causing the meltdown, and asset bubble combined with financial assets given far higher risk ratings than they should have had did that. So when the bubble burst the bonds secured on these assets that were rated AAA were really junk.

Traders blowing up usually doesn't cause these problems because the risk stayed with them, that's why when the dotcom bubble burst the main people who were hurt were those who owned the misrated junk. Prehaps the agencies that give the ratings should be the ones with their nuts in the vice over this?

Anyway, there are two points I'm making here -

1. Is it good to be leveraged above 10:1? In my opinion, no. I think high leverage is really bad.
2. Should you be banned from using such high leverage? Again, in my opinion, no. I say no because in retail Forex the risk stays with the trader so others aren't forced to pick up the pieces when they blow their accounts up, if they were I would say ban high leverage.
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