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

  • #1,001
  • May 2, 2010 10:39pm May 2, 2010 10:39pm
Quoting Scrat
i think he meant to say that the books were in fact already gone BEFORE he started writing. or wait, could it be before he even thought about writing it?
WOW, not even Stephen King can do that.
  • #1,002
  • May 2, 2010 10:44pm May 2, 2010 10:44pm
Quoting Platypus
!!

So funny to see wwwin and this guy darkstar in a pointless fight about something they don't really understand.

Well.... I'm already used to see wwwin talking about things he does not have a clue, but this guy darkstar is new entertainment ....maybe he is back posting in order to promote his book...thats all.

Poor Lloyd Blankfein.......
Meh, I never said I understood. I still don't understand. The truth is none of us do because there is too much missing information. All we have is what the government has released and the media's sensationalized interpretation of the limited information. Both are biased and therefore unreliable.

Personally I don't much care either way. It has zero impact on my life. What interests me is trying to figure out why there is so much hate for goldman. Most people don't even know what they do, yet everyone seems to have an opinion about how useless and evil they are.

As a side note, what is the obsession with the book? Nowhere has it been said that I would be selling it, and even if I did, I fail to see how it's relevant to the subject at hand. If I'm wrong about something, then point it out. Ad hominem attacks do little more then show an inability to articulate a rational arguement.
  • #1,003
  • May 2, 2010 11:04pm May 2, 2010 11:04pm
Quoting Darkstar
Meh, I never said I understood. I still don't understand. The truth is none of us do because there is too much missing information. All we have is what the government has released and the media's sensationalized interpretation of the limited information. Both are biased and therefore unreliable.

Personally I don't much care either way. It has zero impact on my life. What interests me is trying to figure out why there is so much hate for goldman. Most people don't even know what they do, yet everyone seems to have an opinion about how useless and...
Attacks......!?! Who is attacking what here...you are over reacting my friend.

A quick look at your posts will show that you vanished from this forum for quite a while. Than.... out of the blue, you start to post very actively again ..... and claiming to be in the process of writing a book....well don't know about you but I believe that my point was very reasonable.

Anyways I don't know and I don't care if you are here because of your book, I was just commenting about a new entertainer in town , thats it !
  • #1,004
  • May 2, 2010 11:06pm May 2, 2010 11:06pm
Quoting Darkstar
Meh, I never said I understood. I still don't understand. The truth is none of us do because there is too much missing information. All we have is what the government has released and the media's sensationalized interpretation of the limited information. Both are biased and therefore unreliable.

Personally I don't much care either way. It has zero impact on my life. What interests me is trying to figure out why there is so much hate for goldman. Most people don't even know what they do, yet everyone seems to have an opinion about how useless and...
It seems whenever you post now this subject is quick to come up Interesting seeing as it has no relevance whatsoever to the discussion at hand... at least I don't think its connected to GS... maybe more research is needed..
  • #1,005
  • May 3, 2010 1:21am May 3, 2010 1:21am
Quoting wwwin
WOW, not even Stephen King can do that.


He's not Stephen King.
  • #1,006
  • May 3, 2010 1:46am May 3, 2010 1:46am
Quoting The Fool
Most people here are against the margin cap, interpreting it as a limitation on their freedom. But the margin limitation effectively limits the risk incurred by the forex dealers, and if the dealers carry less risk, then there is ultimately less risk for their victims, I mean, their customers. Short of forcing the retail cash trade into the exchanges, that is the best Gary Gensler can do for us.
If that's the best Gensler can do for us, then, no thanks, I don't want his help. Anyway, he IS trying to force currency-trading into the exchanges. He wants to help his buddies, the futures brokers. I'm glad my broker has set up an office in Belize so I and others won't be bothered by Gensler's nonsense.
  • #1,007
  • May 3, 2010 8:46am May 3, 2010 8:46am
Quoting mcmillan
I'm glad my broker has set up an office in Belize so I and others won't be bothered by Gensler's nonsense.
Which broker are you referring to?
  • #1,008
  • May 3, 2010 12:05pm May 3, 2010 12:05pm
Quoting mcmillan
If that's the best Gensler can do for us, then, no thanks, I don't want his help. Anyway, he IS trying to force currency-trading into the exchanges. He wants to help his buddies, the futures brokers. I'm glad my broker has set up an office in Belize so I and others won't be bothered by Gensler's nonsense.
Geez what would you guys do without Gary Gensler?

Do you think that the remaining US forex brokers really do not want to see the margin cap rule come to pass? The high leverage/account churn business model is going to play out as the industry matures. The largest and most solvent US fx broker, Oanda, caps leverage at 50:1. Do you think that's just a coincidence?

Belize, though, huh? Well, at least you will be able to work on your tan after you go down there to try to get your money out the bucketshop..and find out the address is a vacant lot
"If The Fool persists in his Folly he will become wise." - William Blake
  • #1,009
  • Edited May 4, 2010 12:09am May 3, 2010 11:51pm | Edited May 4, 2010 12:09am
Quoting The Fool
The largest and most solvent US fx broker, Oanda
Quick nitpick, Interactive Brokers claims on their web site that "Interactive Brokers Group and its sister affiliates hold over $4.8 billion in equity capital." -- NFA reports show $755M in excess net capital for IB LLC proper (no idea who the "sister affiliates" are) and "only" $138M in excess net capital for Oanda.

These two are the highest excess net capital FX brokers I see on the reports, excluding Deutschbank, UBS, and Citi, as they are white-labeling other products.

edit: oops, I see TD Ameritrade up there too ($255M), but I have no idea what the thinkorswim acquisition is looking like.
Hindsight is 20/20
  • #1,010
  • May 4, 2010 12:11am May 4, 2010 12:11am
IB & TD Ameritrade are borking across all markets, not just cash, so they're in a different class than oanda, But whatever, good nit, nit noted.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #1,011
  • May 5, 2010 2:21pm May 5, 2010 2:21pm
http://www.bloomberg.com/apps/news?p...d=a3kDpSXO49d8
"If The Fool persists in his Folly he will become wise." - William Blake
  • #1,012
  • May 5, 2010 2:37pm May 5, 2010 2:37pm
http://www.cftc.gov/ucm/groups/publi...gensler-41.pdf
"If The Fool persists in his Folly he will become wise." - William Blake
  • #1,013
  • May 8, 2010 9:53am May 8, 2010 9:53am
The key shareholders in the Fed no doubt, the trail if followed would lead to a handful of key lieutenants, likely descendants of the original owners who took it off the US Government's hands... Why doesn't the US take back control of it's own central bank, does anybody else think this is kind of weird , that a country's central bank is a privately held corporation. If we were to unwind the 12 regional banks, and the key shareholders in each one we' probably have a hundred or so financial companies to then unwind. When I worked at ML in the finance office I was amazed to see how one company is actually a byzantine network of thousands of accounting entities. Imagine hundreds of companies structured this way, add in offshore holding companies, etc, etc, and nobody but nobody is ever getting to the bottom of that one... But now that the world's central bank owns 80% or something crazy like that of American's citizens homes you'd think there would be more people wanting to know, anyways, supposing it would be an impossible logistic challenge for the US Government to take back ownership and would it really change anything anyways? Goldman could be a scapegoat, or we could just be seeing the result of a little feud in the family, who knows...

Quoting Platypus
Open your eyes folks........ when something hits main stream it just can't be the real thing,...
  • #1,014
  • Edited 12:30pm May 8, 2010 12:05pm | Edited 12:30pm
[quote=Syxf;3709096]The key shareholders in the Fed no doubt, the trail if followed would lead to a handful of key lieutenants, likely descendants of the original owners who took it off the US Government's hands... quote]

...doggone I know if we put Sarah Palin on the trail she would follow it all the way back to the Illuminati and Bigfoot Satan....it's a conspiracy I tells ya!

http://en.wikipedia.org/wiki/Federal_Reserve_System

"According to the board of governors of the Federal Reserve, "It is not 'owned' by anyone and is 'not a private, profit-making institution'. Instead, it is an independent entity within the government, having both public purposes and private aspects."[15] In particular, the US Government does not own shares in the Federal Reserve System nor its component banks, but does take all of its profits after salaries are paid to employees, a dividend is paid to member banks that is 6% of their capital investment, and surplus is put in a capital account. The government also exercises some control by appointing its highest-level employees and setting their salaries. The Federal Reserve made a record profit of 45 billion in 2009, nearly all of which was transferred to the US Treasury.[16]..."

http://en.wikipedia.org/wiki/Central_bank

"Most richer countries today have an "independent" central bank, that is, one which operates under rules designed to prevent political interference. Examples include the European Central Bank (ECB) and the Federal Reserve System in the United States. Some central banks are publicly owned, and others are privately owned. For example, the United States Federal Reserve is a quasi-public corporation.[2]"
"If The Fool persists in his Folly he will become wise." - William Blake
  • #1,015
  • May 8, 2010 12:14pm May 8, 2010 12:14pm
If the vilification of Gary Gensler has played out in this thread, maybe we can take up that old chestnut, the Federal Reserve. C'mon boys - get your pitchforks!

http://en.wikipedia.org/wiki/Federal_Reserve_Act

http://en.wikipedia.org/wiki/Critici...ederal_Reserve

"For nearly eighty years the U.S. had been without a central bank since the charter for the Second Bank of the United States was allowed to expire. After various financial panics, particularly a severe one in 1907, some Americans became convinced that their country needed some sort of banking and currency reform[1] that would, when threatened by financial panics, provide a ready reserve of liquid assets, and furthermore allow for currency and credit to expand and contract seasonally within the U.S. economy."
"If The Fool persists in his Folly he will become wise." - William Blake
  • #1,016
  • Edited 8:25pm May 8, 2010 2:36pm | Edited 8:25pm
"“We will make public the findings of our review along with recommendations for appropriate actions,” the SEC and CFTC said in their statement."
http://www.courierpress.com/news/201...et-turbulence/

I feel so much better now that Gensler aka Abott, and Schapiro aka Costello (who was told about Madoff but did nothing), collectively known as the Kestone Cops, are looking into the recent near 1000 point dow decline within minutes, which was quickly reversed within minutes.
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  • #1,017
  • May 8, 2010 8:21pm May 8, 2010 8:21pm
"This is yet another indication that the US regulatory and market oversight organizations, especially the SEC and CFTC, continue to be disconnected from and remarkably ineffective in their responsibilities in guarding the public against gross market abuse, price manipulation, and insiders playing games with cheap money supplied by the NY Fed."
http://jessescrossroadscafe.blogspot...driven-by.html
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  • #1,018
  • May 8, 2010 10:14pm May 8, 2010 10:14pm
Ive got an account with Gains capital through forex.com and I believe it is a UK account (even though im in the U.S.) my leverage there is 200:1 and I can hedge. Will this be effected at all?
  • #1,019
  • May 9, 2010 10:50pm May 9, 2010 10:50pm
Quoting techfan1128
Ive got an account with Gains capital through forex.com and I believe it is a UK account (even though im in the U.S.) my leverage there is 200:1 and I can hedge. Will this be effected at all?
Nope. Even if it goes into effect in the US, they would have to convince other countries to follow suit. If they did, it would be like closing the doors to best buy at 10am during the day after thanksgiving sale...
Hindsight is 20/20
  • #1,020
  • May 9, 2010 11:53pm May 9, 2010 11:53pm
Quoting cosgrove
Nope. Even if it goes into effect in the US, they would have to convince other countries to follow suit. If they did, it would be like closing the doors to best buy at 10am during the day after thanksgiving sale...
The impetus to decrease systemic risk is by no means a tough sell these days. Other countries (Japan, Italy) have (or will have) enacted margin reductions in the retail forex game. I would not be surprised to see that spark catch afire everywhere....and sooner than later.
"If The Fool persists in his Folly he will become wise." - William Blake
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