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Cable Update (GBPUSD)

  • #248,101
  • Aug 24, 2010 3:51am Aug 24, 2010 3:51am
Quoting cloggie
No, the CFTC wants to keep non US brokers from having US accounts. So if they have their way, US citizens cannot open retail accounts outside the US.

http://www.cftc.gov/ucm/groups/publi.../2010-456a.pdf

The only thing the CFTC can do in restricting U.S citizens from going to brokers overseas is "threaten" them with fines. Just like people here in the U.S. already do with gambling online with overseas casino companies, the U.S. govt has been unable for years to enforce these stupid laws. Same thing will hold true for overseas forex trading by U.S citizens...........
  • #248,102
  • Aug 24, 2010 3:52am Aug 24, 2010 3:52am
Quoting fxoxford
bro how will it slow the rate, you blow your account because you don't know how to trade, the only thing now is your be blowing more money, instead blowing a $500 account your be blowing a 10k account, so one person is blowing 20 accounts at once
One of the main reasons for retail traders continually blowing their accounts - up there with stupidity and greed - is excessive use of leverage and these traders not appreciating the downside risks of such an inherently risky approach.

Any proposal towards restricting leverage, whilst veering uncomfortably towards a nanny state in terms of regulation, would at least provide some sort of protection.
  • #248,103
  • Aug 24, 2010 3:53am Aug 24, 2010 3:53am
Quoting fxoxford
where in trouble big time if this sh!t runs it course

They are very clear in their proposals, anyone offering retail forex to US retailers must abide by the CFTC rules, and they have eliminated all previous exemptions:

The enactment of the CFMA
permitted registered FCMs and certain
of their unregistered affiliates to act as
counterparties to retail forex
transactions, but it did not specifically
require that intermediaries such as
introducing brokers, account managers
or pool operators be registered in order
to engage in forex transactions with
retail participants. This created
problems when unregistered entities
began soliciting retail customers. The
lack of vetting by a regulatory agency or
an SRO created a situation where
members of the general public were
being solicited by entities and persons
regarding whom they were unable to
obtain any background information. In
some cases, persons banned from
registering in the futures industry as a
result of past misconduct were
operating as unregistered intermediaries
in retail forex transactions because of
the lack of minimum requirements to
operate in the forex business. Pursuant
to the CRA, certain affiliates of FCMs
may continue to be proper forex
counterparties if the affiliated FCM
makes and keeps the risk assessment
records required in Section 4f(c)(2)(B) of
the Act and the affiliate has at least $20
million in adjusted net capital.73
However, under the proposed
regulations, the affiliates will have to
register in the appropriate capacity in
order to serve as a counterparty.

They are very clear in their intention, if you offer FX services in the US to US customer you must be registered and abide by their rules.
  • #248,104
  • Aug 24, 2010 3:55am Aug 24, 2010 3:55am
Quoting joemiami
The only thing the CFTC can do in restricting U.S citizens from going to brokers overseas is "threaten" them with fines. Just like people here in the U.S. already do with gambling online with overseas casino companies, the U.S. govt has been unable for years to enforce these stupid laws. Same thing will hold true for overseas forex trading by U.S citizens...........

No, they are very clever, if you offer FX services to US customer you will need to be registered, period. Nobody in their right mind is going to offer retail FX to US customers without abiding by CFTC rules and no US customer in their right mind is going to deposit any money with some dodgy non US broker that is blatantly skirting the registration requirements.
  • #248,105
  • Aug 24, 2010 3:55am Aug 24, 2010 3:55am
Quoting joemiami
The only thing the CFTC can do in restricting U.S citizens from going to brokers overseas is "threaten" them with fines. Just like people here in the U.S. already do with gambling online with overseas casino companies, the U.S. govt has been unable for years to enforce these stupid laws. Same thing will hold true for overseas forex trading by U.S citizens...........
But all of the bigger brokers would definitely follow any such regulation, as they would not want to risk the wrath of the US, similar to how rule 144a is respected by non-US financial institutions.
  • #248,106
  • Aug 24, 2010 3:56am Aug 24, 2010 3:56am
Quoting gammase1
One of the main reasons for retail traders continually blowing their accounts - up there with stupidity and greed - is excessive use of leverage and these traders not appreciating the downside risks of such an inherently risky approach.

Any proposal towards restricting leverage, whilst veering uncomfortably towards a nanny state in terms of regulation, would at least provide some sort of protection.
with 10:1 leverage the process of blowing your account will just go much slower because you can't risk as much, it doesn't teach you how to trade and about MM and risk.
  • #248,107
  • Aug 24, 2010 4:02am Aug 24, 2010 4:02am
Quoting cloggie
The BBA has been giving these numbers for 15 years and never in its 15 year history has it caused a 100 pip spike, of course today in the middle of summer trading and a solid down trend it is going to do so for the very first time.

Why do we get page after page of dozens of posters predicting a bottom and going long for any and all reasons.

It sure is entertaining. Do people do it continuously so the one out of 1,000 tries that they are right they can be the thread's hero for an hour? What a way to p!ss money away.


I only identified 3 areas on h4. These areas are also TP targets or at least once it breaks through these levels to put my trailing SL above it

I certainly wouldn't even dream of going long anywhere else based on the h4 tf

Like I said I am still short from 1.5670... 270 pips and counting... oh no 260 now

I have a low on my iPhone feed as 1.5371 today, so that was a nice bounce of the 1st area I identified on h4, but it is an aggressive area to long from.

As a swing trader, I am looking at the extreme ranges... it gives me the highest R/R ratios, but I am certainly not going to open positions if it doesn't reach these areas that I have identified. If it doesn't reach my target entry then I simply take my order of the table.

Granted my last entry was based on an intraday entry based on the range, collected my pips and leaving the last one to run for as long as I can. It could have gone the other way and price could have gone back up to 1.60. No one can predict where price is going.

As said, I am not going to jump into the market if the price did not reach my target area. That is not in my plan and requires patience in abundance!

It is also important to see how price moves into these areas!
  • #248,108
  • Aug 24, 2010 4:02am Aug 24, 2010 4:02am
Done Deal It's A Wrap Where S.O.L.
  • #248,109
  • Aug 24, 2010 4:03am Aug 24, 2010 4:03am
Quoting gammase1
But all of the bigger brokers would definitely follow any such regulation, as they would not want to risk the wrath of the US, similar to how rule 144a is respected by non-US financial institutions.

Absolutely and those that cannot afford the new 20 million USD capital requirement will just not accept US customers. And of course there will be a few dodgy brokers that will ignore the rules and try to sollicit US retailers, but would one really trust them with one's money?

I am all for regulation, FIFO and no hedging same currency pairs makes perfect sense and I applaud the CFTC to actually make it part of the rules. The CFTC now proposes to limit the leverage and requires brokers to have a capital requirement of at least 20 mill, again a very sensible approach to retail FX. I have always said that if you don't at least have 10,000 dollars and 10,000 hours to spare, don't bother with FX.
  • #248,110
  • Aug 24, 2010 4:05am Aug 24, 2010 4:05am
Quoting cloggie
Absolutely and those that cannot afford the new 20 million USD capital requirement will just not accept US customers. And of course there will be a few dodgy brokers that will ignore the rules and try to sollicit US retailers, but would one really trust them with one's money?

I am all for regulation, FIFO and no hedging same currency pairs makes perfect sense and I applaud the CFTC to actually make it part of the rules.
Agreed.
  • #248,111
  • Aug 24, 2010 4:09am Aug 24, 2010 4:09am
Quote
I have always said that if you don't at least have 10,000 dollars and 10,000 hours to spare, don't bother with FX.

What about if you have half the cash but double the time?
  • #248,112
  • Aug 24, 2010 4:11am Aug 24, 2010 4:11am
Quoting cloggie
Absolutely and those that cannot afford the new 20 million USD capital requirement will just not accept US customers. And of course there will be a few dodgy brokers that will ignore the rules and try to sollicit US retailers, but would one really trust them with one's money?

I am all for regulation, FIFO and no hedging same currency pairs makes perfect sense and I applaud the CFTC to actually make it part of the rules. The CFTC now proposes to limit the leverage and requires brokers to have a capital requirement of at least 20 mill, again a very...
100:1 leverage is just fine for forex they did a good job with that no need to lower it any more, me my self didn't come in with a lot of money but i was able to start small and now this is how i make my living, so im fighting for the small guys here the ones that don't have 10k to start but started like me with very small account and grew it day by day, so i know for a fact you don't need 10k to start to end up making a living from this business
  • #248,113
  • Aug 24, 2010 4:12am Aug 24, 2010 4:12am
Quoting gammase1
But all of the bigger brokers would definitely follow any such regulation, as they would not want to risk the wrath of the US, similar to how rule 144a is respected by non-US financial institutions.
The wrath of the U.S?...

There are a few countries that don't put up with U.S. intimidation.....like Liechtenstein
Every time the U.S has tried to get info on U.S. tax evaders using their banks..they tell the U.S officials to go f88k themselves...
  • #248,114
  • Aug 24, 2010 4:16am Aug 24, 2010 4:16am
And I think that we gonna see GBP/USD at the point of about 1.5550 by the end of the day. This reduction can't last forever.
  • #248,115
  • Aug 24, 2010 4:17am Aug 24, 2010 4:17am
Quoting joemiami
The wrath of the U.S?...
So you think that, for example, DB, would purposely circumvent any of the rules on leverage that can be offered to US retail guys, just to capture a share of the retail micro-account market?

Good luck with your fight against this!
  • #248,116
  • Aug 24, 2010 4:20am Aug 24, 2010 4:20am
Quoting gammase1
So you think that, for example, DB, would purposely circumvent any rules on leverage offered to US retail guys, just to capture a share of the retail micro-account market?

Most brokers would love to get rid of their micro-account business, it is a lot of work to maintain a couple of thousand 75 dollar accounts, once the CFTC effects the rules they can just dump them en masse and focus on the money makers instead. Right now they can't because all the competition still maintain a micro account structure.

10 10,000 dollar accounts replace 1300 of those pesky 75 dollar ones.
  • #248,117
  • Aug 24, 2010 4:23am Aug 24, 2010 4:23am
Quoting joemiami
The wrath of the U.S?...

There are a few countries that don't put up with U.S. intimidation.....like Liechtenstein
Every time the U.S has tried to get info on U.S. tax evaders using their banks..they tell the U.S officials to go f88k themselves...
So you foresee a wave of offshore brokers opening up shop in Liechtenstein to cater for US micro account holders? Micro accounts are a business that no one really cares for. No offence to you and your account.
  • #248,118
  • Aug 24, 2010 4:23am Aug 24, 2010 4:23am
Quoting joemiami
The wrath of the U.S?...

There are a few countries that don't put up with U.S. intimidation.....like Liechtenstein
Every time the U.S has tried to get info on U.S. tax evaders using their banks..they tell the U.S officials to go f88k themselves...

Actually Liechtenstein signed a full disclosure act with the UK and the US now. The real question is though would you as a US resident knowingly deposit your money with an outfit that flaunts the CFTC requirements? If the broker is willing to do that, what else is it willing to do to get their hands on your money? And what recourse do you have as a retailer trying to get your money back from this broker as a US resident? None.
  • #248,119
  • Aug 24, 2010 4:25am Aug 24, 2010 4:25am
Quoting cloggie
Actually Liechtenstein signed a full disclosure act with the UK and the US now.
But North Korea and Iran haven't!
  • #248,120
  • Aug 24, 2010 4:27am Aug 24, 2010 4:27am
Quoting gammase1
But North Korea and Iran haven't!

There you go great tax haven structure, live in NK and keep your money in Liechtenstein.
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