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What will US citizens do now with 50:1 leverage?

  • #61
  • Oct 3, 2010 10:56pm Oct 3, 2010 10:56pm
Quoting JustThePips
Thanks cica. While I'm not actually thinking of switching to a foreign account at the moment (if it is even allowed), I always like to know my options.
GoMarkets just made the decision to not accept any new account applications from U.S. clients for the time being. See my post at http://www.forexfactory.com/showpost...postcount=1169
  • #62
  • Oct 3, 2010 11:02pm Oct 3, 2010 11:02pm
Quoting craignorton
Less leverage is always better. Small market coughs can kill you at 100:1 +
Keep in mind that everyone trades differently. For some people, more leverage works to their advantage. Even if a theoretical 99% of people were disadvantaged with the higher leverage, there would still be the 1% for which it would benefit. Reduction in leverage will throw off their plan. Of course, I don't know who benefits and who suffers from 100:1; I'm just saying that it WILL hurt some traders to have this reduced.

Also, let's say everyone reduced all their trade size to half to keep the same margin requirement they were working with before. Sure, this means that losing traders will lose half as much as before; but, this also means that winning traders would win half as much as before. In other words, losing traders are still losing, just more slowly. Winning traders are still winning, but more slowly.
  • #63
  • Oct 4, 2010 1:13am Oct 4, 2010 1:13am
Quoting Leche Mocha
Then you obviously suck at math. They just halved your buying power. Tell you what, I'll give you $50 back for every $100 you give me. Does that sound like a good deal to you also?
I have no idea where you are going with that logic. Leverage affects the amount of margin you need to open a trade. If your MM is sound, a change from 1:100 to 1:50 should hardly matter.

Quoting JustThePips
I think oakmonster is just saying that s/he doesn't over leverage as it is, so that putting in twice the margin won't effect him/her. Sure, the buying power is halved, but when you only use a small fraction of your buying power, doubling it makes no difference. Or to put it another way - since they are careful with their trades and don't get margin calls, their margin comes back to them anyway. $0 *2 = 0. The math is good!
That's right. I rarely see the benefit of 1:100. 1:50 would work for me too. I do however like the extra margin available for those times where I see a quick scalping opportunity and wish to over leverage a little for a few minutes to grab another $50
  • #64
  • Last Post: Oct 4, 2010 9:35am Oct 4, 2010 9:35am
"And that is why you failed." Yoda said it, not me.

Quoting oakmonster
I have no idea where you are going with that logic. Leverage affects the amount of margin you need to open a trade. If your MM is sound, a change from 1:100 to 1:50 should hardly matter.



That's right. I rarely see the benefit of 1:100. 1:50 would work for me too. I do however like the extra margin available for those times where I see a quick scalping opportunity and wish to over leverage a little for a few minutes to grab another $50
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