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

  • #1,041
  • Jun 14, 2010 2:56am Jun 14, 2010 2:56am
I'm starting to look for a good offshore broker and suggest everyone here follow suit. Like many of you, I'm basically libertarian in outlook and don't want the government's "help". It will only get worse here in the U.S. - Obama and his lefty appointees think the "sheeple" are too foolish to make their own decisions and need Big Brother to tell them what's best for their lives. Everything I suspected about the guy and his fawning cronies has been confirmed. Screw them!!!
  • #1,042
  • Jul 1, 2010 5:25pm Jul 1, 2010 5:25pm
Where is Gensler (keystone kop) in not going after MT4 forex dealers using the Virtual Dealer Plug-in?
http://www.nfa.futures.org/basicnet/...px?seqnum=2461

If Gensler and CFTC want to regulate retail forex, then why are they not prohibiting this Virtual Dealer Plug in?
This plug-in allows the brokers to steal your money, why is it not prohibited? Where is Gensler when you need him to be a cop? If the CFTC wants to regulate forex, why in the hell is this thievery allowed? Is he too busy passing laws to help Goldman to look into real time stealing?
All talk and no action, "transparency" bullshit talk and he does nothing about it.

http://cdn.forexfactory.com/images/misc/progress.gif

  • #1,043
  • Jul 1, 2010 10:05pm Jul 1, 2010 10:05pm
Quoting wwwin
Where is Gensler (keystone kop) in not going after MT4 forex dealers using the Virtual Dealer Plug-in?
http://www.nfa.futures.org/basicnet/...px?seqnum=2461

If Gensler and CFTC want to regulate retail forex, then why are they not prohibiting this Virtual Dealer Plug in?
This plug-in allows the brokers to steal your money, why is it not prohibited? Where is Gensler when you need him to be a cop? If the CFTC wants to regulate forex, why in the hell is this thievery allowed? Is he too busy passing laws to help Goldman to look...
wow I wish NFA checks all of the MT4 brokers as to the use of virtual plugin ... maybe when the brokers will pay $250k for each violation (GAIN had like 4 so 1MIL) they'll decide to play fair ...

to all other brokers ... beware and do not cheat/steal!
  • #1,044
  • Jul 25, 2010 4:56pm Jul 25, 2010 4:56pm
A very bad decision

I will go to London
  • #1,045
  • Jul 26, 2010 5:00pm Jul 26, 2010 5:00pm
Anybody know when or if the CFTC will make a decision on this.

Any guesses?
  • #1,046
  • Jul 26, 2010 8:21pm Jul 26, 2010 8:21pm
Quoting pip_seeker
Anybody know when or if the CFTC will make a decision on this.

Any guesses?
Haven't heard anything about a decision yet. Am keeping my ears open and Am hoping somebody in CFTC will have the brain to NOT pass it. Did write to CFTC to give them my 2 cents.
Make your losses in demo. Earn your profits live.
  • #1,047
  • Aug 3, 2010 11:45pm Aug 3, 2010 11:45pm
Let the fear and loathing begin anew.

http://turnkeytradingpartners.com/wo...s/archives/541
"If The Fool persists in his Folly he will become wise." - William Blake
  • #1,048
  • Aug 4, 2010 12:10am Aug 4, 2010 12:10am
Quoting The Fool
Let the fear and loathing begin anew.

http://turnkeytradingpartners.com/wo...s/archives/541
What the...what kind of scumbags pass a 2300 page bill without reading it? This is now the norm for US politics.
  • #1,049
  • Aug 4, 2010 3:47am Aug 4, 2010 3:47am
how will this affect 6E?
  • #1,050
  • Aug 4, 2010 5:45am Aug 4, 2010 5:45am
Quoting kiwi4Xtrader
how will this affect 6E?
6E is not an OTC contract ....
  • #1,051
  • Aug 4, 2010 5:55am Aug 4, 2010 5:55am
Yes, so will I be able to keep trading 6E with my low margin broker in the US with no threat of change?

Also, will this have any influence on market movement/volume?
  • #1,052
  • Aug 4, 2010 11:29am Aug 4, 2010 11:29am
Quoting Jhig
Yes! I was around. It was just this past November 2009 when the NFA decreased leverage. We all layed down and took it. There was no public "forum" to post our concerns with the NFA, everything the NFA did was back-office. The NFA did what it wanted to do.

Look, this 10:1 leverage deal is going to happen, I'll bet my trading equity on that. If traders would only look at the Big Picture, all the chips will fall into place. Point-blank, the Government is not making money on Retail (Spot) Currency traders. By regulating an supposedly "unregulated"...
Hello everyone...my first post...long time lurker and use the FF news calendar every day...good stuff!

I am not too much in the know about forex futures, but if this stuff is looking like it's going to happen, I guess I had better learn fast!

With that said, this is in regards to the 6E comments...so if I get it right, spot/retail forex will be severely restricted (I believe an "Accredited Investor" had to be worth at least $1,000,000, not including the primary place of residence), but the CME forex futures (including the 6E and M6E, etc.) will not be touched. In essence, based on Open E Cry's Margin Requirements (as an example), I only need (as of right now) $405 initial margin and a daily margin of $202.50 to open one M6E contract that is roughly equivalent to 1 tick equaling $1.25 (so the same as 12,500 units if it were spot fx, correct)? If these numbers are correct, then I would be getting close to 50:1 effective leverage, no?

I quote the above old post to reaffirm the idea (I don't know if this is true) that, supposedly, the CME and NFA work "hand-n-hand"...if it is the case, this entire maneuver would make a lot of sense....retail fx customers either go overseas or (perhaps more likely, like I'm now looking at) move to CME fx futures, thusly dividing and eating the retail fx pie, if you will.

Lastly, the news posted by The Fool seems to have been replicated in multiple places, and sounds rather like a solicitation for business at most places (and certainly it is not The Fool who is the solicitor...although if a lot of money is made by groups like Turnkey Trading Partners, we *all* will wish we were in on that action )

Soooo, any idea if the CME products will be affected by all this....I must admit I'm saddened by this turn of events as I have very much appreciated being able to trade small amounts of cash while learning forex....

P.S. Ha ha, isn't CME based in...Chicago?

Regards,

Jeff
  • #1,053
  • Aug 4, 2010 12:15pm Aug 4, 2010 12:15pm
If OTC forex in the USA is wiped out the trade moves to futures. The mini-lot traders can migrate and boost the volume for the "micro" fx contracts. Volume overall in fx futures would pick up. Maybe increased demand would mean addition of more "exotic" fx contracts and "micro" contracts in metals, etc. So what's the prob?
"If The Fool persists in his Folly he will become wise." - William Blake
  • #1,054
  • Aug 4, 2010 12:30pm Aug 4, 2010 12:30pm
Quoting The Fool
If OTC forex in the USA is wiped out the trade moves to futures. The mini-lot traders can migrate and boost the volume for the "micro" fx contracts. Volume overall in fx futures would pick up. Maybe increased demand would mean addition of more "exotic" fx contracts and "micro" contracts in metals, etc. So what's the prob?
Hello The Fool...if you mean, "what's the prob(lem)", in my opinion it is not too much of a big deal, except I like my current spot broker, and I will have to now find a new broker, learn the platform, get a charting service for the fx futures (which I've looked at a little bit....the price movements are similar and I can most likely adapt), and learn the lingo concerning fx futures....if I had a lot more cash and were doing well with spot, I'd be rather upset.

However, *IF* we need to migrate, and it does result in "more volume", then I suppose a rising tide lifts all boats, eh?

Regards,

Jeff
  • #1,055
  • Aug 4, 2010 1:05pm Aug 4, 2010 1:05pm
Quoting stljeffbb
Hello The Fool...if you mean, "what's the prob(lem)", in my opinion it is not too much of a big deal, except I like my current spot broker, and I will have to now find a new broker, learn the platform, get a charting service for the fx futures (which I've looked at a little bit....the price movements are similar and I can most likely adapt), and learn the lingo concerning fx futures....if I had a lot more cash and were doing well with spot, I'd be rather upset.

However, *IF* we need to migrate, and it does result in "more volume", then I suppose...
Right - IF. Problem for small traders if micro contract volume does not pick up. You more than likely will find a free platform with good enough charting on board via a futures broker that negates the need for subscribing to a charting service. Besides the trade size limitations its basically the same game.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #1,056
  • Aug 4, 2010 2:11pm Aug 4, 2010 2:11pm
Quoting The Fool
Let the fear and loathing begin anew.

http://turnkeytradingpartners.com/wo...s/archives/541
I'm surprised by the tepid/non-existent response by the both the FX news sites & the broker community. If this were a real threat, forexmagnates, FXstreet, etc would be all over this news, and you'd probably see yet another Broker Coalition response like the one formed for the NFA 10:1 proposition. My guess is it's not a credible threat..
  • #1,057
  • Aug 4, 2010 3:05pm Aug 4, 2010 3:05pm
Quoting Trader KGB
I'm surprised by the tepid/non-existent response by the both the FX news sites & the broker community.
Maybe they don't know about it...it was buried in that ridiculous 2300 page document. The threat seems credible enough, and was quite clear about banning OTC forex transactions, barring some kind of regulation...and who knows what that regulation will bring with it...10:1 leverage perhaps? It may be up to us to get the word out. Lets all contact as many sites as possible and spread this around.
  • #1,058
  • Aug 4, 2010 3:11pm Aug 4, 2010 3:11pm
From the link:

Elimination of OTC Forex
Effective 90 days from its inception, the Dodd-Frank Act bans most retail OTC forex transactions. Section 742(c) of the Act states as follows:
“…A person [which includes companies] shall not offer to, or enter into with, a person that is not an eligible contract participant, any agreement, contract, or transaction in foreign currency except pursuant to a rule or regulation of a Federal regulatory agency allowing the agreement, contract, or transaction under such terms and conditions as the Federal regulatory agency shall prescribe…”


This provision will not come into effect, however, if the CFTC or another eligible federal body issues guidelines relating to the regulation of foreign currency within 90 days of its enactment. Registrants and the public are currently being encouraged by the CFTC to provide insight into how the Act should be enforced. See CFTC Rulemakings regarding OTC Derivatives located at the following website address, under Section XX – Foreign Currency (Retail Off Exchange). As this provision is potentially devastating to the forex industry, affected readers are encouraged to voice their opinions to the CFTC directly. To do so commentary should be forwarded to via email to:

[email protected]
Attn: David A. Stawick, Secretary
Commodity Futures Trading Commission
Three Lafayette Center
1155 21st Street, NW
Washington, DC 20581



Naturally, most retail traders are not eligible contract participants.
  • #1,059
  • Aug 4, 2010 3:39pm Aug 4, 2010 3:39pm
Quoting 24HourTrader
Maybe they don't know about it...it was buried in that ridiculous 2300 page document. The threat seems credible enough, and was quite clear about banning OTC forex transactions, barring some kind of regulation...and who knows what that regulation will bring with it...10:1 leverage perhaps? It may be up to us to get the word out. Lets all contact as many sites as possible and spread this around.
As expected, no threat.
  • #1,060
  • Aug 4, 2010 4:02pm Aug 4, 2010 4:02pm
http://www.cftc.gov/LawRegulation/OT...0_FXSwaps.html

When you look for proposed rulemaking for retail fx from CFTC - this is what you find. They point back to the rules proposed earlier this year. I always assumed we were waiting for the financial reform legislation to be enacted b4 we would find out about the leverage reduction rule, etc. Well, now, here we go. Hurry up and wait some more. But I have my doubts about retail fx being shut down.
"If The Fool persists in his Folly he will become wise." - William Blake
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