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100:1 leverage will change.. speak out!!

  • #21
  • Jan 27, 2010 9:19am Jan 27, 2010 9:19am
Looks like CFTC is playing games with the comments. They haven't published comments in over a week. Let's flood them with complaints folks. email [email protected] and let them know we aren't going away!
  • #22
  • Jan 27, 2010 9:59am Jan 27, 2010 9:59am
Quoting McNarland
I trade 2 to 1 at extreme times and sometimes have traded 4 to 1. I cant see how anyone could trade with higher leverage without accepting the risk of a fat tail wiping them out. I think the 10 to 1 proposed legislation is easy to work with profitably
I agree, 10:1 is ample enough to produce a very healthy return, and without excessive risk.

I do wish the CFTC would stop wasting time and energy on trivial issues and address more important issues like security of funds deposited. Leave the clueless to be hoisted by their own petard I say!
  • #23
  • Jan 27, 2010 10:22am Jan 27, 2010 10:22am
Quoting pip_seeker
10 to 1 is lots? Tell the board how much money you're trading with.

What is the equity in your trading account?
The equity in his trading account is irrelevant in this context, viability and performance is expressed in percentages not dollars.
  • #24
  • Jan 27, 2010 12:09pm Jan 27, 2010 12:09pm
Quoting sullyforex
Looks like CFTC is playing games with the comments. They haven't published comments in over a week. Let's flood them with complaints folks. email [email protected] and let them know we aren't going away!
I AGREE!
  • #25
  • Feb 1, 2010 9:44am Feb 1, 2010 9:44am
CFTC continues to suppress the latest comments from the trading public. Email [email protected] today and demand they post our comments now!

http://www.cftc.gov/lawandregulation...10/10-001.html
  • #26
  • Feb 2, 2010 4:00am Feb 2, 2010 4:00am
Well i personally think 5:1 leverage is more than enough...Why do you need to take such big risk?
  • #27
  • Feb 2, 2010 5:27am Feb 2, 2010 5:27am
Quoting stressfree
Well i personally think 5:1 leverage is more than enough...Why do you need to take such big risk?
Please stop this nonsense.
Risk is given by position size, not by leverage.
Leverage only dictates margin requirements.
  • #28
  • Feb 2, 2010 6:18am Feb 2, 2010 6:18am
Quoting stressfree
Well i personally think 5:1 leverage is more than enough...Why do you need to take such big risk?
For you my friend I propose that you put up $100 for every $1 you trade. That should satisfy you.

*on ignore
ok Friendo? This is madness!?!? - THIS, IS, FOREX!!!
  • #29
  • Feb 2, 2010 7:21am Feb 2, 2010 7:21am
Quoting stressfree
Well i personally think 5:1 leverage is more than enough...Why do you need to take such big risk?
Fair enough you have your opinion but to everyone his trading style. How many times does this need to be said?

You use low leverage and many people including myself need high leverage.

Traders who use high leverage dont spend any time wondering why some traders use low leverage. In fact we could not care less.

But those who use low leverage spend a lifetime trying to persuade high leveragers that it is not necessary. Everyone should just concentrate on their own trading style I think and not worry about how others trade.
  • #30
  • Feb 2, 2010 7:46am Feb 2, 2010 7:46am
This discussion is a bit out of context:

1- They are not passing this rule on the basis or even consideration of our humble little accounts. They are trying to restrict the BIG players from using an obscene leverage, losing money and then saying "TOO BIG TO FAIL".

2- If you are trading with 1:400 leverage chances of your money going kaput is very high.

3- I agree the govt. should not put any such restrictions but just look at what banks did.

All this might do is make the 95% failure rate go down to 90%.
Forex is not about gambling, even a casino wont allow 1:400 leverage. Come to think of it if 1:400 is the leverage you are looking for, you will be better off in a casino(even there 1:36 is the best return you can expect) than trading
forex.
  • #31
  • Feb 2, 2010 7:49am Feb 2, 2010 7:49am
Quoting jagui
Please stop this nonsense.
Risk is given by position size, not by leverage.
Leverage only dictates margin requirements.

hmmmm....right. And the chances of you eating more than 1 piece of pie go down if you have bought two.
  • #32
  • Feb 2, 2010 8:40am Feb 2, 2010 8:40am
Quoting neo1599
hmmmm....right. And the chances of you eating more than 1 piece of pie go down if you have bought two.
yes, because I'll throw them on the face of some which asks for 10:1 leverage.
  • #33
  • Feb 2, 2010 9:29am Feb 2, 2010 9:29am
Quoting neo1599
This discussion is a bit out of context:

1- They are not passing this rule on the basis or even consideration of our humble little accounts. They are trying to restrict the BIG players from using an obscene leverage, losing money and then saying "TOO BIG TO FAIL".
I've never heard this before; my understanding is that the big investment banks don't use any leverage at all. How are the banks trading? By using a broker? I don't think so. If they would use 400:1 leverage, then who would be giving that to them?

The big banks trade primarily with other big banks as I understand it, and there isn't any leverage involved. If there was, some 3rd party would need to be providing that, and in trading between investment banks there is no 3rd party to my understanding, but I could be wrong...
  • #34
  • Feb 2, 2010 10:59am Feb 2, 2010 10:59am
I'm tired of listening to all these eggheads on the bulletin boards lecturing traders on why they shouldn't use 100:1 leverage. If you don't think using this kind of leverage is a good idea then don't use it and mind your own business!

The rest of us are perfectly content with leverage the way it is now.
  • #35
  • Feb 2, 2010 2:03pm Feb 2, 2010 2:03pm
When i got a mail very first time about the perspective change, i immideately called to my broker (IBFX) and asked them is it true and wat r u gonna do if that will happened? coz, i said, all the monie people will be gone to european or even asian brokers (who still allow 500:1 and who easily give you a special account for large lots trading), so they told me if that will happen it's probly will have in result a consolidation of the major american brokers against this act. coz they (brokers) would the the first target in the bad scenario. they have to prove they r really good to have a business with))) will see)))
  • #36
  • Feb 2, 2010 5:58pm Feb 2, 2010 5:58pm
Quoting sullyforex
I'm tired of listening to all these eggheads on the bulletin boards lecturing traders on why they shouldn't use 100:1 leverage. If you don't think using this kind of leverage is a good idea then don't use it and mind your own business!

The rest of us are perfectly content with leverage the way it is now.
Exactly the point I made above. I make quite a good living out of forex using HIGH leverage. Because I know how to use the leverage that suits my trading strategy. It's getting nauseating to hear all the lectures from people who use low leverage that suit their own strategy. Some trading strategies need high leverage or else they are defeated. It's a question of choice and trading style.
  • #37
  • Feb 2, 2010 11:26pm Feb 2, 2010 11:26pm
Leverage is a newbie issue. Only a percentage of trading equity should be committed so the currency can breathe. Total lotsize outstanding vs. your equity are the key variables. And bankers play without leverage they are running the show. Moreover then have zero spread.

A newbie can crash his account with 1:1 leverage if he's willfully ignorant, invests emotionally (a guy trait), or uses indicators popular in the 60s.
  • #38
  • Feb 3, 2010 7:34am Feb 3, 2010 7:34am
Quoting rossiya
leverage is a newbie issue. Only a percentage of trading equity should be committed so the currency can breathe. Total lotsize outstanding vs. Your equity are the key variables. And bankers play without leverage they are running the show. Moreover then have zero spread.

A newbie can crash his account with 1:1 leverage if he's willfully ignorant, invests emotionally (a guy trait), or uses indicators popular in the 60s.
ниччо не понял!!! а по русски можно???
  • #39
  • Feb 3, 2010 8:44am Feb 3, 2010 8:44am
Quoting sashasan
ниччо не понял!!! а по русски можно???
No russians here, sorry
ok Friendo? This is madness!?!? - THIS, IS, FOREX!!!
  • #40
  • Feb 3, 2010 10:17am Feb 3, 2010 10:17am
Quoting Liger86
No russians here, sorry
that's fine, i just tried to figure out wat he meant coz did not understand clear...
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