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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?

  • #301
  • Jan 25, 2010 4:18pm Jan 25, 2010 4:18pm
Quoting Dan Johnston
Or even minutes at times, believe it or not. But couldn't have said it any better myself, even with the mental lubricant doing it's job at the moment. ...Sometimes tooooooooo slippery....

There are many ways to make money in FX. There are many more ways to lose money in FX, ...as in anything else.

The trick is to lose just enough to teach you how to win. Much like a Cheetah.
Hope your not trading then

Anyone believe that this could, in theory of course, encourage a carry trade scenario? There seems to be a move away from that but in order for someone who traded with larger leverage to meet their previous financial goal they would thus have to hold on to a position longer thus creating larger price moves. Of course one person wouldnt have that influance but it seems that there encouraging buy and hold with this. Someone also said that it will be back to a larger trending market. Just a thought.
  • #302
  • Jan 25, 2010 4:26pm Jan 25, 2010 4:26pm
Quoting andy9775
Hope your not trading then

Anyone believe that this could, in theory of course, encourage a carry trade scenario? There seems to be a move away from that but in order for someone who traded with larger leverage to meet their previous financial goal they would thus have to hold on to a position longer thus creating larger price moves. Of course one person wouldnt have that influance but it seems that there encouraging buy and hold with this. Someone also said that it will be back to a larger trending market. Just a thought.

Force a lower volume market no doubt, which is harder to scalp like all last week going into the Pres's speach, tight range with extreme fast moves.


Adapt and Over Come!!
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #303
  • Jan 25, 2010 4:29pm Jan 25, 2010 4:29pm
Quoting Turveyd
Force a lower volume market no doubt, which is harder to scalp like all last week going into the Pres's speach, tight range with extreme fast moves.


Adapt and Over Come!!
It would actually force larger moves. People would be forced to hold positions longer. Instead of someone with 100:1 targeting 10 pips at 10:1 they would target 100 pips to meet the previous $$$ goal. It would encourage a carry trade type scenario.
  • #304
  • Jan 25, 2010 4:38pm Jan 25, 2010 4:38pm
Quoting Jade Gate
Here are excerpts from my comment paper sent to the CFTC - it addresses several of the additional consumer protection issues traders have raised here, as well as succinctly articulating the argument re 10:1

[font=Arial][size=2]Dear Mr Stawick,

Thank you for the opportunity to comment on the proposed changes to retail Forex. The Commission is to be congratulated on the many excellent initiatives to address consumer protections.

[font=Arial][size=2]For the purposes of comment,...

Wonderful, and so well expoused, ...but it is still a compromise.
Free markets are just that: FREE

And should remain just that : FREE

I will concede that at a certain point, when it is apparent that someone/something has come upon the "Theroy of everything" as it relates to the FX market, there needs to be a "speed brake" to limit the Fx equivalent of "FUSION". Call it "FXFUSION"

As much as I agree with you, you are being a bit self serving at the expense of those that have a very rapid learning curve and may not have the luxury of your timeframe.

Even so, you're not far off the optimum.
  • #305
  • Jan 25, 2010 4:40pm Jan 25, 2010 4:40pm
Quoting andy9775
It would actually force larger moves. People would be forced to hold positions longer. Instead of someone with 100:1 targeting 10 pips at 10:1 they would target 100 pips to meet the previous $$$ goal. It would encourage a carry trade type scenario.

That could be wishful thinking there ( Low volume days suck for me by the way so definately not wishful thinking here )

As this is only going to really affect the <30SL Scalpers really and they'll be forced to move there accounts to the UK anyway, yes it will put a lot off trying in the first place, but they always claim retail isn't a big factor in the Forex market so we'll have to wait and see.

Infact I'll put $10 on, 4 weeks after the change to let people settle down the charts will look very similar to before this was even mentioned.

Volume and Range is still low but a Monday and Friday was wild so give it a few days, but people might already be spooked!!
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #306
  • Jan 25, 2010 4:42pm Jan 25, 2010 4:42pm
Quoting Dan Johnston
Wonderful, and so well expoused, ...but it is still a compromise.
Free markets are just that: FREE

And should remain just that : FREE

I will concede that at a certain point, when it is apparent that someone/something has come upon the "Theroy of everything" as it relates to the FX market, there needs to be a "speed brake" to limit the Fx equivalent of "FUSION". Call it "FXFUSION"

As much as I agree with you, you are being a bit self serving at the expense of those that have a very rapid learning curve and may not have the luxury...
Yes I would prefer a two month 30 trade demo period that simulates your intended account size and leverage. A smart trader demos anyway, so this would force someone to demo then have to work with 10:1 for three months. Unless of course the demo period is counted to wards that some how. Other then that its good that he pointed out education and risk management as strong reasons for failure.
  • #307
  • Jan 25, 2010 4:43pm Jan 25, 2010 4:43pm
Quoting andy9775
Hope your not trading then

Anyone believe that this could, in theory of course, encourage a carry trade scenario? There seems to be a move away from that but in order for someone who traded with larger leverage to meet their previous financial goal they would thus have to hold on to a position longer thus creating larger price moves. Of course one person wouldnt have that influance but it seems that there encouraging buy and hold with this. Someone also said that it will be back to a larger trending market. Just a thought.

I love people that laugh that much. They are so full of life.
  • #308
  • Jan 25, 2010 4:44pm Jan 25, 2010 4:44pm
Quoting Turveyd
That could be wishful thinking there ( Low volume days suck for me by the way so definately not wishful thinking here )

As this is only going to really affect the <30SL Scalpers really and they'll be forced to move there accounts to the UK anyway,...
Yes I didn't clarify but this would happen if everyone traded at lower leverage off course, the majority of FX transactions come from London anyway, so a US only reduction will not have a major impact specifically if it only impacts the retail sector. My fault.
  • #309
  • Jan 25, 2010 4:50pm Jan 25, 2010 4:50pm
Quoting andy9775
Yes I didn't clarify but this would happen if everyone traded at lower leverage off course, the majority of FX transactions come from London anyway, so a US only reduction will not have a major impact specifically if it only impacts the retail sector. My fault.

Thats what forums are for debating and working things out


Wait and See, how many Scalpers are there even ??


To many variables on this 1 and unknowns.



Everyone would make more of a impact, but the USA being only 1/24th of the worlds population ish ( although likely more traders per million ) the effect shouldn't be too bad.
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #310
  • Jan 25, 2010 5:16pm Jan 25, 2010 5:16pm
They really should police the right people.

Certainly not the vast majority of us!
  • #311
  • Jan 25, 2010 5:41pm Jan 25, 2010 5:41pm
Quoting Dan Johnston
They really should police the right people.

Certainly not the vast majority of us!
http://www.quillandquire.com/blog/in...-dictionaries/
  • #312
  • Jan 25, 2010 6:30pm Jan 25, 2010 6:30pm
Quoting Jade Gate
Here are excerpts from my comment paper sent to the CFTC - it addresses several of the additional consumer protection issues traders have raised here, as well as succinctly articulating the argument re 10:1

[font=Arial][size=2]Dear Mr Stawick,

Thank you for the opportunity to comment on the proposed changes to retail Forex. The Commission is to be congratulated on the many excellent initiatives to address consumer protections.

[font=Arial][size=2]For the purposes of comment,...

This is exactly the type of letter that should be sent, IMO. Far too many letters I am seeing are just " I strongly oppose this proposal! Leave our leverage alone!" It is good they are writing, but taking a bit more time to suggest several alternatives is the more effective route, I believe.
  • #313
  • Edited 7:16pm Jan 25, 2010 7:09pm | Edited 7:16pm
Quoting Jason Rogers
Hi wwwin,

FXCM UK will continue accepting US traders even if the proposal is passed.

The same discussion came up on EliteTrader about why some UK brokers don't accept US traders....
LOL...I believe in this guy as much as I believe on BB,BF or BO.

By the way I think that instead of BSing about things they have no control of, FXCM should try to stop locking traders out of their platform when they make a few killer trades.

I don't trade with this people but based in what people talk over the net if they disapear here in america they will not be missed!!
  • #314
  • Jan 25, 2010 8:02pm Jan 25, 2010 8:02pm
Quoting Platypus
LOL...I believe in this guy as much as I believe on BB,BF or BO.

By the way I think that instead of BSing about things they have no control of, FXCM should try to stop locking traders out of their platform when they make a few killer trades.

I don't trade with this people but based in what people talk over the net if they disapear here in america they will not be missed!!
What he means is as long as there is no law preventing them from doing so FXCM will accept US customers and if so I would assume that FXCM would have control over who they will or wont accept.
  • #315
  • Jan 25, 2010 8:04pm Jan 25, 2010 8:04pm
Too much thinking for such an obvious answer. Must be all the pollution affecting our elected leader's decisions.

Very toxic from the looks of it!!!
  • #316
  • Jan 25, 2010 8:16pm Jan 25, 2010 8:16pm
Quoting Platypus
LOL...I believe in this guy as much as I believe on BB,BF or BO.

By the way I think that instead of BSing about things they have no control of, FXCM should try to stop locking traders out of their platform when they make a few killer trades.

I don't trade with this people but based in what people talk over the net if they disapear here in america they will not be missed!!
Hey, Nostradamus, if you don't have experience with them, you have no standing to criticize them. "Based on what people say" is heresay, it has no probative value. My experience with FXCM and Jason has been that they stand behind what they say. And there is no law as he stated, in US or in UK that would not allow them to open US resident's account in UK.
  • #317
  • Jan 25, 2010 8:21pm Jan 25, 2010 8:21pm
Quoting wwwin
Hey, Nostradamus, if you don't have experience with them, you have no standing to criticize them. "Based on what people say" is heresay, it has no probative value. My experience with FXCM and Jason has been that they stand behind what they say. And there is no law as he stated, in US or in UK that would not allow them to open US resident's account in UK.
Let's hope it remains that way.
My parents brought me here from a communist country, and swallowing their pride, they changed our surname from a latin/eastern european name to an American name: hence; Johnston.
Please don't make me think that was a big mistake!
  • #318
  • Jan 25, 2010 8:25pm Jan 25, 2010 8:25pm
Quoting andy9775
What he means is as long as there is no law preventing them from doing so FXCM will accept US customers and if so I would assume that FXCM would have control over who they will or wont accept.
Got that Andy.... my point is that this guy will never come here and comment on the subject if there wasn't something else lurking around. They will let people trade a UK account as long as there is no law against it. The same way that leverage is shrinking, laws are coming, but they will not talk about it....right?

It just sounds like BB empty talks before the congress .
  • #319
  • Jan 25, 2010 8:30pm Jan 25, 2010 8:30pm
Quoting wwwin
Hey, Nostradamus, if you don't have experience with them, you have no standing to criticize them. "Based on what people say" is heresay, it has no probative value.
So do I have to slam my finger with a hammer to prove to myself that I will end up on the emergency room?


Quote
My experience with FXCM and Jason has been that they stand behind what they say. And there is no law as he stated, in US or in UK that would not allow them to open US resident's account in UK.
Yet !
  • #320
  • Jan 25, 2010 8:35pm Jan 25, 2010 8:35pm
Unfortunately that may be true. When the big bully starts excercising his power, others will fall in line. So sad that we are not all super heroes.
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