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

  • #1,141
  • Aug 31, 2010 5:10am Aug 31, 2010 5:10am
Quoting pipmutt
Would that be such a bad thing though? Regulated, transparent, insured, accountable.
You're missing one big component: liquidity. All of the main action will always be in the spot market. Forcing retail into the Futures market will be like kicking us into the kiddie pool.
  • #1,142
  • Aug 31, 2010 5:24am Aug 31, 2010 5:24am
Quoting Slack

You're missing one big component: liquidity. All of the main action will always be in the spot market. Forcing retail into the Futures market will be like kicking us into the kiddie pool.
Granted it's only a small percentage of spot, and micro is practically non-existent apparently, but wouldn't that change if more and more traders made the move across?

Is there perhaps some sort of derivative (?) of futures that could be introduced and offered as an alternative?
  • #1,143
  • Aug 31, 2010 5:57am Aug 31, 2010 5:57am
does anyone know where to find a list of sec/finra regulated brokers? I cant seem to find one......
  • #1,144
  • Aug 31, 2010 6:13am Aug 31, 2010 6:13am
Quoting mfoste1
does anyone know where to find a list of sec/finra regulated brokers? I cant seem to find one......
http://www.cftc.gov/marketreports/fi...fcms/index.htm
  • #1,145
  • Aug 31, 2010 6:19am Aug 31, 2010 6:19am
Quoting mfoste1
does anyone know where to find a list of sec/finra regulated brokers? I cant seem to find one......
http://www.interactivebrokers.com/MP...?ib_entity=llc
  • #1,146
  • Aug 31, 2010 6:24am Aug 31, 2010 6:24am
Quoting mfoste1
ATTENTION ALL: Satan has taken human form as gary gensler.....

http://i13.photobucket.com/albums/a2...erthedevil.jpg
...and now he is:

http://i13.photobucket.com/albums/a2...enslerhalo.jpg

....sorry, I just couldn't resist...notice that his halo is not all that big, though

Jeff
  • #1,147
  • Aug 31, 2010 6:29am Aug 31, 2010 6:29am
hey guys just chatted with ibfx and they said that if your a u.s. citizen your broker has until the end of the year to bring you back here in the u.s. so be warned that we cannot escape the obama wrath. so it doesnt matter if your broker is in the uk or not.
  • #1,148
  • Aug 31, 2010 6:31am Aug 31, 2010 6:31am
will be a major mistake if this happens.
  • #1,149
  • Aug 31, 2010 6:35am Aug 31, 2010 6:35am
Quoting stljeffbb
...and now he is:


....sorry, I just couldn't resist...notice that his halo is not all that big, though

Jeff

dont be fooled he is a shapeshifter.......
  • #1,150
  • Aug 31, 2010 6:48am Aug 31, 2010 6:48am
Where's Mel Gibson when you need him...
lowest draw down possible please.
  • #1,151
  • Aug 31, 2010 8:20am Aug 31, 2010 8:20am
Quoting Slack
You're missing one big component: liquidity. All of the main action will always be in the spot market. Forcing retail into the Futures market will be like kicking us into the kiddie pool.
The vast majority of retail trading never leaves the kiddie pool of the broker's internal book.
  • #1,152
  • Aug 31, 2010 8:22am Aug 31, 2010 8:22am
Quoting treadline
hey guys just chatted with ibfx and they said that if your a u.s. citizen your broker has until the end of the year to bring you back here in the u.s. so be warned that we cannot escape the obama wrath. so it doesnt matter if your broker is in the uk or not.
Interesting, I read the entire 167 page PDF and nowhere in it did I see anything regarding overseas brokers or this end of the year issue.
  • #1,153
  • Edited 9:22am Aug 31, 2010 8:51am | Edited 9:22am
Quoting Trader KGB
Interesting, I read the entire 167 page PDF and nowhere in it did I see anything regarding overseas brokers or this end of the year issue.
Yeah, I thought they had to pass/approve/test (whatever) the whole Extra-territorial concept before they could just go out to the international banking community and demand all US citizens with overseas accounts be turned over...I truly hope that we are able to keep our UK accounts.

Big Brother is really overstepping itself here. All in the name of consumer protection.

As a consumer I can go out right now and buy a 50,000.00 SUV that as soon as I drive it off the lot I lose money.

Same thing with Forex...I can go drop 50,000.00 into a UK FX account and as soon as I make my first trade lose half of my account.

I don't see them demanding all car dealerships turn away consumers who want to purchase a 50,000.00 SUV...?

So they don't ACTUALLY care about the consumer, they just want the pundits to know they are "trying"

And in all honesty, what do politicans care about Forex or investing...they are all in a position that they and their families do not have to worry about money at all. So they don't ever stop and think..."who is this hurting?"

Just like the healthcare issue...no one in any level of US politics has to worry about switching health care...they all have private health care for as long as they live.
  • #1,154
  • Aug 31, 2010 9:01am Aug 31, 2010 9:01am
Quoting Trader KGB

Interesting, I read the entire 167 page PDF and nowhere in it did I see anything regarding overseas brokers or this end of the year issue.
Wow, you must have been bored!

IBFX haven't proved to be the most reliable source of info in the past, it wasn't that long ago they were telling everyone FIFO would mean you couldn't trade with stops!!
  • #1,155
  • Aug 31, 2010 9:05am Aug 31, 2010 9:05am
You make an excellent arguement with the SUV example.

But such pristine logic would fall on their deaf ears.

This is about a concerted effort that ALL bureaucracies are making to control every part of your life. "Consumer protection" is an Orwellian excuse for what it really is...

Name one catagory of life and property that is not intensively intruded upon by the US powers that be.

Property, education, children, finance, privacy, communication, THOUGHT ("hate crimes" legislation), you name it is now tightly regulated in an effort to ultimately subsume you into the all seeing eye of completely centralized government.

Why should trading be any different?
Scarlett
  • #1,156
  • Aug 31, 2010 9:06am Aug 31, 2010 9:06am
Quoting pilotui
Big Brother is really overstepping itself here. All in the name of consumer protection.

As a consumer I can go out right now and buy a 50,000.00 SUV that as soon as I drive it off the lot I lose money.

Same thing with Forex...I can go drop 50,000.00 into a UK FX account and as soon as I make my first trade loose half of my account.

I don't see them demanding all car dealerships turn away consumers who want to purchase a 50,000.00 SUV...?

And in all honesty, what do politicans care about Forex or investing...they are all in a position that...
Very true. And not one of the thousands of pages of the financial deform bill touched the Big 3 F's of the financial meltdown: Fannie, Freddie and the Fed. Instead, they stepped up "too big to fail" and are going after retail FX traders and others who had nothing to do with the financial crisis.
  • #1,157
  • Aug 31, 2010 9:17am Aug 31, 2010 9:17am
Quoting Scarlett

Name one catagory of life and property that is not intensively intruded upon by the US powers that be.

Property, education, children, finance, privacy, communication, THOUGHT ("hate crimes" legislation), you name it is now tightly regulated in an effort to ultimately subsume you into the all seeing eye of completely centralized government.
What's the alternative, allow all those to be self-regulating, or maybe just not bother at all! What would you be accusing governments of then, not caring?

Hey, the majority voted them in democratically, try living in China!
  • #1,158
  • Aug 31, 2010 9:24am Aug 31, 2010 9:24am
Quoting Scarlett
You make an excellent arguement with the SUV example.

But such pristine logic would fall on their deaf ears.

This is about a concerted effort that ALL bureaucracies are making to control every part of your life....
You're comments lead me back to why I trade. To purchase a Deserted Island, and live there until I die in a self sustaining environment.
  • #1,159
  • Aug 31, 2010 9:32am Aug 31, 2010 9:32am
Quoting pipmutt
What's the alternative, allow all those to be self-regulating, or maybe just not bother at all! What would you be accusing governments of then, not caring?

Hey, the majority voted them in democratically, try living in China!
Only a few people "voted in" aren't either committed nanny statists or sold out to some interest (biased industry, union, etc.) The alternative is to vote for non-career politicians who put basic liberty and property rights at the forefront. How to do that is outside the scope of this thread, but the China reference is a complete red herring.
  • #1,160
  • Aug 31, 2010 9:40am Aug 31, 2010 9:40am
Quoting 24HourTrader
Regardless of past failures, the response this time was colossal from the trading community, and for that should be applauded. While we may not get to keep 100:1, 50:1 is much better than 10:1.

I see no reason to think that the CFTC would have changed their mind and changed their propoal to 50:1, if no objections were raised.
Agreed. 9100 comments received in just two months!! That was awesome! That showed the government that we are not the "Silent Majority" who just roll over and play dead whenever they stuff something down our throats.

The only thing is I just hope that the government respects the uniqueness of the Spot Forex makret and stop at these leverages leve and not reduce it further. It's not their business to touch the leverages in the first place but the result of their meddling, 50:1 for the "major currencies" is not too bad. Now they have had their fun playing with the leverage, they need to move on and concentrate working on something else. There are far more important things that they should be doing for the Retail Forex industry.
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