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MB Trading Futures - Introduction

  • #5,881
  • Sep 27, 2010 3:22pm Sep 27, 2010 3:22pm
Quoting egkid
Hi Justin
1- What do u mean by
no effect on our liquidity, which comes from outside providers
Can clear it some more, Sorry i didn't get it

2- True
people get stopped out of trades FASTER at HIGHER leverage.

3= Could u please answer my 3rd question about margin call?

Appreciate your help
Egkid,

We aren’t a deal desk. We don’t provide any liquidity. We route your orders to destinations that do. The sizes at those destinations won’t be effected by the new rules. It doesn’t relate in any manner.

You need to maintain 50:1 account value to equity ratio or you will receive a margin call. There’s a lot of information out there about this, but we will be sending out something tomorrow.
  • #5,882
  • Sep 27, 2010 4:45pm Sep 27, 2010 4:45pm
Quoting jleblang
Roldreth,

Yes, these pairs will all be 50:1 like everything else. None of the pairs that we offer are considered “exotic” under the new CFTC ruling, so nothing will be 20:1.
Justin,
Thanks for your reply.
Regards,
r.
"hey hey what can I do"
  • #5,883
  • Sep 28, 2010 2:02pm Sep 28, 2010 2:02pm
Quoting jleblang
Rule takes affect October 18th.
Well that pretty much kills Forex in the US. You can't even have offshore accounts anymore. I had an account with FxSol AU and FXCM UK and both of them have just told me they have to close my accounts because I am a citizen of the oppressive US. 50:1 leverage you will need more cash in your account to just trade, and then you will get margined out all the time. It's over unless you are happy to just dink around making pennys. Even Stalin would be like, "Wow - the US has really gotten oppressive!"
  • #5,884
  • Sep 28, 2010 2:35pm Sep 28, 2010 2:35pm
Quoting Pipvalhalla
Well that pretty much kills Forex in the US. You can't even have offshore accounts anymore. I had an account with FxSol AU and FXCM UK and both of them have just told me they have to close my accounts because I am a citizen of the oppressive US. 50:1 leverage you will need more cash in your account to just trade, and then you will get margined out all the time. It's over unless you are happy to just dink around making pennys. Even Stalin would be like, "Wow - the US has really gotten oppressive!"
Cracks me up when I read this stuff. By definition, people saying this weren't making money to begin with. I know the ruling will have zero impact on my trading, I've never been over 25:1 and I do just fine. But either way, even if you maxxed out your leverage, you should be able to make exactly half as much as you did before. So the only way that you won't be able to make anything is if you weren't making anything before because half of zero is still zero.

The idea that this is the death of FX is ridiculous. Some people will trade less size, some people will deposit more funds into their accounts, some people won't have to do anything, but unless no one was ever making money to begin with, people will keep going just fine. And we all know that eventually, the whole world will be at 50:1 except for two guys working out of a country that doesn't exist yet as a desk.
  • #5,885
  • Sep 28, 2010 2:58pm Sep 28, 2010 2:58pm
Quoting wannatradefx
Cracks me up when I read this stuff.
LOL! Same here. Good lord! You can't make money with 50:1 leverage?
Nice post.

Also, nice clarifying post by Justin. Thanks!
  • #5,886
  • Sep 28, 2010 4:06pm Sep 28, 2010 4:06pm
If your using the recommended 2-5% equity per trade.
It should not make too much different.
per pip no difference.

just stops people putting too many lots on that they shouldnt have on anyway thus protecting the uneducated forex newbies.

Really it will just take longer too blow an account.
Losers will still lose but for longer.

1 lot 1:100 leverage = for eg 1 hour to hold with no stop to eat up the margin requirement to hold it.

1 lot 1:50 leverage = will last 2 hours to eat up the margin requirement.

considering 95% losers this may help them stay in longer.
making green pips large and red pips small this is my goal.
  • #5,887
  • Sep 28, 2010 6:16pm Sep 28, 2010 6:16pm
lower leverage = less money to trade = less profit = need more fund = not very practical for middle class people = bull crap
  • #5,888
  • Sep 28, 2010 8:16pm Sep 28, 2010 8:16pm
Quoting paul1
If your using the recommended 2-5% equity per trade.
It should not make too much different.
per pip no difference.

....
That's right...if you are practicing good MM and position sizing, your true leverage should never even come close to 50:1 on a trade. So while the broker will now require more margin set aside from your account (which maybe will stop you from opening a bunch of trades), chances are you were not actually using 100:1 leverage on your trades in the first place....so going down to 50:1 will not prevent you from making money.

Here's another in-depth explanation:
http://www.forexfactory.com/showpost...0&postcount=19
  • #5,889
  • Sep 28, 2010 9:13pm Sep 28, 2010 9:13pm
trade with interbankfx, they have 400:1 leverage for the australia branch. I believe we risk lesser money to make more money is better. No point trading 50:1 leverage really. Moreover, our money is not safe with any brokers.
  • #5,890
  • Sep 28, 2010 9:49pm Sep 28, 2010 9:49pm
Quoting sg_trader
trade with interbankfx, they have 400:1 leverage for the australia branch. I believe we risk lesser money to make more money is better. No point trading 50:1 leverage really. Moreover, our money is not safe with any brokers.
Yeah, smart move, give your money to a deal desk at 400:1. That should last you an hour.
  • #5,891
  • Sep 28, 2010 11:26pm Sep 28, 2010 11:26pm
Quoting wannatradefx
Yeah, smart move, give your money to a deal desk at 400:1. That should last you an hour.

Interbankfx is not a dealing desk. Go to the website to check it out.
  • #5,892
  • Sep 28, 2010 11:33pm Sep 28, 2010 11:33pm
Quoting sg_trader
Interbankfx is not a dealing desk. Go to the website to check it out.
ROFL. Best line of the day. I guess if the website says it, it must be true.
  • #5,893
  • Sep 29, 2010 9:53am Sep 29, 2010 9:53am
Quoting sg_trader
Interbankfx is not a dealing desk. Go to the website to check it out.
Those spreads are terrible!
  • #5,894
  • Sep 29, 2010 10:27am Sep 29, 2010 10:27am
An email was sent out to our clients yesterday regarding the CFTC Margin Restrictions - I've posted the text below for those not on our mailing list or haven't yet checked their inbox.

The CFTC has recently released new rules that go into effect October 18, 2010. Included in these new rules is an increased margin requirement from 100:1 to 50:1 for the major Forex currency pairs. Clients who are highly leveraged may need to take action ahead of the start of trading on October 17 (5:00 PM EST) to prevent margin selling in their account. This affects our Desktop and MetaTrader 4 accounts equally.

For a complete overview of the CFTC’s newly adopted rules and what these changes will mean to you, please visit: FOREX CFTC RULING

This new margin requirement will affect all existing positions as well as all new pending orders on the effective date. Please note that the changes will have no impact on spreads, execution, or commissions. Swap rate charges will DECREASE slightly, as less money is being borrowed to place a trade.

If your current account margin is greater than 50:1 please consider what actions you will take to meet the new margin requirements when the rule goes into effect. If you wish to make an additional deposit to address the new margin rules or to maintain your current trading size, please visit FOREX Deposits for funding instructions. You can also contact customer support at 866-628-3001 if you need help calculating how these changes will affect your existing positions before the deadline. Partial positions will be liquidated in any accounts exceeding the 50:1 margin requirement when the rules go into effect to bring the account into compliance.

All live GTC orders which would cause your account to exceed the new 50:1 margin rule on October 18th will be rejected in their entirety. Please reduce the size of these trades or cancel them accordingly. Our systems will go live with these changes one day early, on Sunday, October 17.

You may also visit the CFTC website for their documents on the new requirements and policy: CFTC Factsheet PDF
  • #5,895
  • Edited 1:38pm Sep 29, 2010 1:01pm | Edited 1:38pm
Hi Justin,

I have just experienced a sudden WEIRD 6 tick/pip BID/ASK SPIKE just to take out my position in the EURUSD. Initially I was suspecting that maybe a bank or liquidity provider was doing crazy things just to take out our stop losses when I opened two previous positions at the daily pivot, each position was ironically hunted to the exact stoploss before continuing down but this SPIKE simply confirms that there is something wrong with the account. Would you be able to ask for a refund of our initial deposits. We basically opened the account believing that we can actually trade news on the account and have no manipulation on the "ECN". Since now you have changed the policy and have basically proved to us that there is actually a virtual plug in doing some strange spikes EVEN on a 1:45pm lunchtime quiet trading hour. It would be nice to have all our full initial deposit money back.

Here are the screenshots compared to another account around the same time:
Attached Image(s) (click to enlarge)
Click to Enlarge Name: mbtrading_spike_manipulation1.jpg Size: 286 KB
Click to Enlarge Name: alpari_marketmaker1.jpg Size: 243 KB
  • #5,896
  • Sep 29, 2010 1:55pm Sep 29, 2010 1:55pm
Quoting jleblang
An email was sent out to our clients yesterday regarding the CFTC Margin Restrictions - I've posted the text below for those not on our mailing list or haven't yet checked their inbox....
Thanks Justin
the leverage will changed automatically right?
  • #5,897
  • Sep 29, 2010 9:27pm Sep 29, 2010 9:27pm
^wow that spike is real bad...
  • #5,898
  • Sep 29, 2010 10:03pm Sep 29, 2010 10:03pm
It shows real ECN stop hunt too. No brokers are on your side really accept to make the most of your money that is.
  • #5,899
  • Sep 29, 2010 10:09pm Sep 29, 2010 10:09pm
Guys better watch out about this broker. They seem to be nice on the outside. U don't know what they will do when your money is in their hands.
  • #5,900
  • Sep 29, 2010 10:17pm Sep 29, 2010 10:17pm
Mucropteltd: i suggest u report this to NFA. Make all these bucketshops pay.
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