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

But why put it on the shoulders of the trader? Why not make the retail FX firms more accountable and see how they deal with it? Sure, some brokers will pass it down, but responsible brokers with plenty of cash will continue to flourish, largely unaffected, while meeting-capital-requirements-by-the-skin-of-their-teeth brokers will pass it down, losing customers, and eventually dying out, no?

I guess that approach is a little anti-competitive

"The trader" is going to see the margin cap rule as an assault on his freedom.

But that is not the issue; the margin a dealer allows translates to higher capital reserves that must be sustained by the dealer, translates to greater risk to the dealer, just another contribution to greater systemic risk.

If you believe the statistics oft quoted, "the trader" is going to lose his money anyway, regardless of the margin.

http://finance.yahoo.com/news/Banks-...7&asset=&ccode=

"By one count the five banks together have mustered more than 130 registered lobbyists, including 40 former Senate staff members and one retired senator, Trent Lott. The list includes former staff members for the Senate majority and minority leaders, the chairmen and ranking members of the banking and finance committees, and more than 15 other senators. In the first quarter, the banks spent $6.1 million on lobbying."

If these aholes want to gamble, fine - they can all play Russian Roulette for all I care. Just don't ask the government to cover their ass when they lose & don't ask for federal protection on those funds that they gamble with.

How about lobbying Wall Street to liquidate their hundred-trillion-$ side bets and move that money into investments into something we actually need - like a safe energy supply system that doesn't pollute & doesn't require continual military adventures in the Middle East, like better schools, a better transportation system, better health care delivery, etc, etc the list is endless, but credit is very tight for these things, while the casino keeps humming along....

And they are going to get their way too, cause that is the way it is. The system is rigged in their favor. If you don't so, think about the EU bailout, who do you think is paying the majority of the IMF part of the bailout. TARPII, more foreign banks bailed out by US taxpayers...cause result is that the banks will get paid 100%, most of it from tax payers funds, EZ and US taxpayers. Now why do you think there was a drop in the DOW of almost 1,000 last Thursday?, could it be to pave the way for TARPII by scaring the hell out of people so they would not complain when IMF gets in there to bail out foreign banks?
I am sure waiting for the Keystone Cops to finish their investigation, that would be funnier than the Jon Stewart show....
let's continue bailing out banks, bad debt is not bad debt any more, they should just do away with in accounting principles.

Gensler said "We will make public the finding of our review...."
and as expected, fat finger was not the cause of the problem, but the Keystone Cops are not making public their finding...
http://www.ft.com/cms/s/0/1a0bb8ce-5...44feab49a.html

Your screen name is fitting. Some of us actually know how to use 100:1 to profit and control risks, however, so why don't you take your uninformed rants to a political forum? (You've obviously never worked for the government, either, else you'd know what a joke some of your suggestions are.)

Here's what I am wondering......

Nasdaq just cancelled 10,000 trades from last Thursday.

http://www.forexfactory.com/news.php?do=news&id=236163

So, do you think that is something that could happen in Forex ??

Say there was an incredibly large move that seemed unstoppable......

Man it would suck to have a White Swan trading day only to have it reversed.

http://finance.yahoo.com/tech-ticker...spc,FAZ,gs,JPM

"Roubini goes even further, saying Congress should reinstate Glass-Steagall which separated commercial banking from investment banking. "If Goldman Sachs wants to be a hedge fund, so be it, but there should be a level playing field," he argues. "Other hedge funds don't borrow at zero rate with the guarantee of the government." ..."

Goldman commercial bank my arse...they only did that to get TARP money, and also to borrow your mone at 0%, buy TBills and get 3.5%. Other than that, their business continues to be exactly the same...but nobody does anything about it, so nothing is going to change...all the members of ff in tens of thousands, about 200 signed the petition, so nobody cares about doing anything...everyone wants everything done for them...well business will continue as usual or worse.
I am done with this Petition thing, taken out of my signature and gensler icon gone too....pathetic 204 signatures.
Good luck and make sure to complain a lot when the margin is reduced, after they are screwed is when they will complain.

wwwin,

I like your new look! You're "hotter" than ever!

When are we going to send the petition?

Who decides? Do we need Jade Gate to give it the ok?

Thanks

Thank you Scarlett...I think Jade needs to do it.
But, 204 signatures LOL,

Ok, I'll contact Jade....

We need to ship it outta here regardless of the number....
They will look at it like congressmen, i.e, every one letter of complaint represents 100 people who think the same way. Only problem is that we can't vote these clowns at CFTC out of office....

DJ EU Lawmakers Approve New Rules For Hedge Funds, Private Equity

By Matthew Dalton
Of DOW JONES NEWSWIRES

BRUSSELS (Dow Jones)--Lawmakers at the European Parliament Monday night approved new rules for hedge funds and private-equity firms, rejecting complaints that the legislation could unduly restrict European investors from using offshore funds.

The legislation passed 33-11 at the parliament's key Economic and Monetary Affairs committee. European Union finance ministers at the European Council are expected to approve their version of the legislation Tuesday night, kicking off what will likely be months of talks between the council, the parliament and the European Commission, the EU's executive arm, over a final version that will become law.

The parliament's legislation will require funds to register with European authorities. Fund managers that use borrowed money, or leverage, will have to file plans with the authorities setting limits on how much leverage they can use, and a new EU regulator would have the power to cap leverage at funds that pose "systemic" risks.

Most controversially, the legislation would create a black list of countries that lack adequate financial regulation. European investors would be forbidden from sending their money to funds based in these countries.

The prospect of a black list has sparked strong opposition from European hedge funds, which are mostly managed from London but rely heavily on funds based in the Cayman Islands. Jean-Paul Gauzes, the center-right French politician who led debate on the legislation at the parliament, has said it is unclear whether the Cayman Islands would be placed on the list, though the Cayman Islands financial industry says it can satisfy the conditions laid out in the legislation for avoiding the list.

Fund managers based outside the EU would be able to get a "passport" to raise money from investors across the EU if they pledged to follow the new rules.

The final legislation will likely differ significantly from the legislation approved by the parliament. The version that finance ministers are expected to pass Tuesday allows national governments to opt out from some of the rules. The council's versions contains no black list, a provision that EU diplomats say is strongly opposed by national governments at the council.
The council's legislation, however, has drawn criticism from U.S. Treasury Secretary Timothy Geithner, because it would prevent funds and fund managers based outside the EU from obtaining a passport to raise money and market themselves across the 27-nation bloc.

Forex is not going to disappear, and you can make money consistently with 10:1, what's the problem? I prefer more "leverage" in real economy than in the forex casino. This is the problem with western economies, the more intelligent people end up focusing their energy in stocks and other financial casinos because banks lend more money for speculating than for entrepreneurshipping.

Occident needs to recover itself from the financial hangover and regenerate its real economy.

When I began to trade I thought that to reduce leverage was a frontal attack to retail traders, but after many months I see that to reduce leverage is better for all.

Thank You.

We need more banks like this.....

http://finance.yahoo.com/news/Bank-f...6&asset=&ccode=

"The nonprofit microfinance bank Grameen America has thrived with a loan repayment rate of more than 99 percent, said Yunus, an economist who founded Grameen Bank in his native Bangladesh in 1976 and won the Nobel Peace Prize in 2006."

http://www.cftc.gov/PressRoom/PressR...pr5832-10.html

"Specifically, the provision relating to equal access would require that co-location and proximity hosting services be available to all qualified market participants willing to pay for the services. The provision relating to fees would ensure that cost is not used as a means to deny access to some market participants by pricing them out of the market. The provision relating to latency transparency would ensure that the longest, shortest and average latencies for each connectivity option are readily available to the public. The provision relating to third-party providers would ensure that they can continue to provide hosting services and that exchanges could obtain information about market participants, their systems and their transactions from third-party providers sufficient to carry out self-regulatory obligations."

http://www.cftc.gov/LawRegulation/Fe...010-13613.html

Bullshit, it is all designed to take small firms out of the loop, so the Goldmans get all the business, just like the proposed 10-1 rule was designed for the same thing since it exempted banks...so all this is is a smoke screen designed to put small firms out of busines disguised as something else, at the end of the day it all comes down to money for the "owners". See these videos...


Goldman envisions a business plan and Gensler proposes rules to make the plan work...The blood sucking Optopus needs a new money making fad to attach its tentalces to. The IPO, CDO, CDS and Cap and Trade fad are over, something else needs to replace them...
and the statement, below, that few small firms will be affected is crap...they are telling you what you want to hear but the result will be more costs to the trader for the benefit of the big boys, to the detriment of small service providers being able to compete. This will force more small firms out of operation, concentrating power on the elite, sort of monopolizing who the providers will be, and the costs of the services will increase, all passed down to the end user, as always.

A bunch of crap

Food for thought

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Watching them now. Thanks W!

I think the government is very dumb. I think what they really have to focus on is all the forex scams like brokers not giving money back, manipulating prices, dealing desk sh#ts, all the scam signal systems that don't work .

Get these things done and then consider the leverage or whatever.