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CFTC Final Retail Forex Rules - 50:1 Leverage

  • #21
  • Aug 31, 2010 4:44pm Aug 31, 2010 4:44pm
Hi All,

Wanted to send a link to our official statement regarding these new rules. Check it out if interested!

http://www.ibfx.com/Corporate/post/2...nsactions.aspx

Happy Trading,

Abigail
  • #22
  • Aug 31, 2010 4:59pm Aug 31, 2010 4:59pm
Okay, I followed the link to the new CFTC release on your site but, it doesn't mention anything specifically about the rulings that were passed. Am I missing something here? I suppose maybe I better check the original link ...

http://www.favstocks.com/cftc-releas...rules/3023603/

Nope, doesn't say anything about the overseas restrictions here either?
  • #23
  • Aug 31, 2010 5:05pm Aug 31, 2010 5:05pm
Quoting Abigail
Hi All,

Wanted to send a link to our official statement regarding these new rules. Check it out if interested!

http://www.ibfx.com/Corporate/post/2...nsactions.aspx

Happy Trading,

Abigail
Thank you, Abigail.
  • #24
  • Aug 31, 2010 6:35pm Aug 31, 2010 6:35pm
Quoting Abigail
Hi All,

Wanted to send a link to our official statement regarding these new rules. Check it out if interested!

http://www.ibfx.com/Corporate/post/2...nsactions.aspx

Happy Trading,

Abigail
Thanks Abigail! I'm interested to see what other brokers have to say about this!
  • #25
  • Aug 31, 2010 6:42pm Aug 31, 2010 6:42pm
Read the ACTUAL release of rules from the CFTC

http://www.forexfactory.com/showpost...43&postcount=1
  • #26
  • Aug 31, 2010 7:22pm Aug 31, 2010 7:22pm
Quoting CallMeCarrie
Thanks Abigail! I'm interested to see what other brokers have to say about this!
dbFX just sent me a response basically stating (screw the CFTC), they are FSA regulated -- we are open for business for any US clients.
  • #27
  • Aug 31, 2010 7:49pm Aug 31, 2010 7:49pm
Frankly, one shouldn't be over 5:1 in forex trading. If you are, then you aren't managing risk well.

Although, the lower margin always helps, but it again, shouldn't be the point where you will hit a margin call.

This rule doesn't affect me one bit.
  • #28
  • Aug 31, 2010 7:51pm Aug 31, 2010 7:51pm
Quoting ecTrade
Okay, I followed the link to the new CFTC release on your site but, it doesn't mention anything specifically about the rulings that were passed. Am I missing something here? I suppose maybe I better check the original link ...

http://www.favstocks.com/cftc-releas...rules/3023603/

Nope, doesn't say anything about the overseas restrictions here either?
ec, are you looking for the link with the published final rules? If you are, here below is the link:

http://www.cftc.gov/ucm/groups/publi...ster083010.pdf


Make sure your Acrobat PDF is configured right.


Hope it helps.
Make your losses in demo. Earn your profits live.
  • #29
  • Aug 31, 2010 7:58pm Aug 31, 2010 7:58pm
Quoting rsmind
Frankly, one shouldn't be over 5:1 in forex trading. If you are, then you aren't managing risk well.

Although, the lower margin always helps, but it again, shouldn't be the point where you will hit a margin call.

This rule doesn't affect me one bit.
There are times when leverage can be very effective..
It all depends on how you trade.

As for the US regulations.. who really cares. There are work arounds.
  • #30
  • Aug 31, 2010 8:03pm Aug 31, 2010 8:03pm
Quoting lasty
As for the US regulations.. who really cares.
I care. I still don't know what will happen to my US account with FXCM UK.
  • #31
  • Aug 31, 2010 8:15pm Aug 31, 2010 8:15pm
Quoting sonicpunk32
I care. I still don't know what will happen to my US account with FXCM UK.
Below is a post by pilouti regarding a conversation that he had with a FXCM rep. regarding his FXCM UK account.

Not sure if you are in the same situation as him. Hope this helps.

http://www.forexfactory.com/showthre...24#post3991346
Make your losses in demo. Earn your profits live.
  • #32
  • Aug 31, 2010 8:16pm Aug 31, 2010 8:16pm
High leverage with Spot Forex was a racket anyway, good riddens, I say. However, most Spot Forex traders are still stuck with the problem of having to trade against their brokers anyway, and not being on a regulated exchange between other traders.
Binary Options Trader
  • #33
  • Aug 31, 2010 8:19pm Aug 31, 2010 8:19pm
Quoting lasty
There are times when leverage can be very effective..
It all depends on how you trade.

As for the US regulations.. who really cares. There are work arounds.

Please elaborate.

US citizens would like to know the loop holes ;-)
  • #34
  • Aug 31, 2010 8:28pm Aug 31, 2010 8:28pm
Quoting Yoda_Glenn
High leverage with Spot Forex was a racket anyway, good riddens, I say. However, most Spot Forex traders are still stuck with the problem of having to trade against their brokers anyway, and not being on a regulated exchange between other traders.
See this is what I don't get. According to what Oanda claims on their website, they hedge their net aggregate customer positions so they are risk-neutral. And if all of the brokers do like Oanda does, then they should all be risk neutral.

Then, why would they need to trade against the traders like us?
Make your losses in demo. Earn your profits live.
  • #35
  • Aug 31, 2010 8:43pm Aug 31, 2010 8:43pm
Quoting Ipndasno
Please elaborate.

US citizens would like to know the loop holes ;-)
http://www.allforexworld.com/Snaps/?...-US-Citizen--1
  • #36
  • Aug 31, 2010 8:51pm Aug 31, 2010 8:51pm
Quoting Yoda_Glenn
High leverage with Spot Forex was a racket anyway, good riddens, I say. However, most Spot Forex traders are still stuck with the problem of having to trade against their brokers anyway, and not being on a regulated exchange between other traders.
All spot forex traders have to trade against someone. Broker or bank.
The reason why spot forex has been so successful is because there is no muppet regulator stuffing it up.
If you have a problem with your broker change it.
  • #37
  • Aug 31, 2010 9:12pm Aug 31, 2010 9:12pm
Quoting Forexia
See this is what I don't get. According to what Oanda claims on their website, they hedge their net aggregate customer positions so they are risk-neutral. And if all of the brokers do like Oanda does, then they should all be risk neutral.

Then, why would they need to trade against the traders like us?
LOL. Seriously? Are you asking that question? So a broker let's traders trade for an hour and fills all of their buy and sell orders. Then if that makes them short or long, they go to a bank and flatten their net position. Since traders are wrong more than right, that makes them almost risk-free and profitable, and slightly more so the worse fills that they give you. And people still use joke brokers like Dukascopy and Oanda because they post that nonsense.

If you are a good trader, the only thing you care about is execution without anyone trying to screw you or take your money. That ain't Oanda. Where do you think their net capital came from.
  • #38
  • Aug 31, 2010 9:37pm Aug 31, 2010 9:37pm
This is the best that could happen to the retail forex industry, less leverage and more regulation, now let's focus on trading profitably.
  • #39
  • Aug 31, 2010 9:43pm Aug 31, 2010 9:43pm
Quoting wannatradefx
LOL. Seriously? Are you asking that question? So a broker let's traders trade for an hour and fills all of their buy and sell orders. Then if that makes them short or long, they go to a bank and flatten their net position. Since traders are wrong more than right, that makes them almost risk-free and profitable, and slightly more so the worse fills that they give you. And people still use joke brokers like Dukascopy and Oanda because they post that nonsense.

If you are a good trader, the only thing you care about is execution without anyone trying...
Yes, I am Serious. And Yes, I was asking that question because I really don't get it. On one hand, I hear those brokers claim that they wouldn't have the incentives to trade against the traders because they hedge their exposure. And then on the other hand, I hear stories of SL Hunting, Requoting and huge slippage unrelated to low liquidity or volatile market conditions. Ok now. I understand. They are basically betting on traders being wrong more often than right and even if the traders are right, they have an incentive to make the traders lose.

But if overtime, traders got better educated become more right than wrong? Wouldn't they lose money over time? And I am asking that question seriously.

Dukascopy, btw, is an ECN.
Make your losses in demo. Earn your profits live.
  • #40
  • Aug 31, 2010 10:01pm Aug 31, 2010 10:01pm
Quoting Forexia
Yes, I am Serious. And Yes, I was asking that question because I really don't get it. On one hand, I hear those brokers claim that they wouldn't have the incentives to trade against the traders because they hedge their exposure. And then on the other hand, I hear stories of SL Hunting, Requoting and huge slippage unrelated to low liquidity or volatile market conditions. Ok now. I understand. They are basically betting on traders being wrong more often than right and even if the traders are right, they have an incentive to make the traders lose....
Margin Fx brokers arent brokers in the real sense. They are infact price makers. They make a spread and when the position will become large enough they hedge it. Quite simply they have a luxury of you dealing on their spreads.As all banks know spread income is a revenue source.
They arent big enough to move markets. If your broker skews a price well away from the market, then its time to change brokers.
Its not in their interest to burn clients. It costs them to get a client onboard and the more you trade the more they make on their spread.
why would they cull their business revenue?
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