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Thoughts on 50:1 Leverage

  • #301
  • Jun 13, 2011 11:22pm Jun 13, 2011 11:22pm
Actually, this entire thread is sickening!

If I want to drive my car on the Innerstate with no speed limit, I can do so in Germany. You don't see them dying over there.

Same with high leverage.... I WANT it and some stupid self annointed beaurocrat took it from me.
  • #302
  • Jun 13, 2011 11:29pm Jun 13, 2011 11:29pm
Quoting tdion
Actually, this entire thread is sickening!

If I want to drive my car on the Innerstate with no speed limit, I can do so in Germany. You don't see them dying over there.

Same with high leverage.... I WANT it and some stupid self annointed beaurocrat took it from me.
I agree, total bullsh*t.
  • #303
  • Jun 14, 2011 4:55am Jun 14, 2011 4:55am
All the previous posts that are for leverage of 50:1 sound like USA brokerage propaganda. They see their market pie shrinking.

If leverage doesn't matter then why place restrictions of 50:1?

The bottom line is the less leverage you have the MORE money you need to avoid a margin call to trade a system that was developed for 100:1 or higher leverage.

If you have to use more money, you stand a greater risk of losing more not less. Backward thinking doesn't make something safer... If you think so try walking backwards for a day.

It cuts out the small time trader or causes them to blow more accounts due to being under-capitalized.

If I want 100:1 leverage or higher I should have that choice. It doesn't mean I plan to use that whole amount every single day, but if a bunch of opportunities present themselves I want to have the leverage available to trade those opportunities successfully without fear of blowing an account because some moron regulator thinks they are somehow doing me a favor by regulating my butt out of various trades.

If you say we have a free market where there is no price fixing (IE common complaint against China) and then go out an limit leverage to an absurdly low level is this not a form of price fixing?

If everything was black and white --- cookie cutter world maybe it would work, but it's not and therefore lies the problem with 50:1 leverage limitation. The world is bigger than just what lies in the USA. If you want to play globally you have to be competitive globally.
  • #304
  • Jun 14, 2011 5:50am Jun 14, 2011 5:50am
I think it would have been better to introduce some sort of test or exam for new traders before they were alowed to trade with leverage. Its all to easy to open an account and deposit what could be a huge amount of money with no knowledge of the market and blow the lot in no time at all.

Brokers could have been made to finance some sort of course with an exam at the end for traders wanting to open a live account. I think the problems with leverage and forex comes from lack of understanding about what it is rather than the leverage itsself.

You cant drive a car without passing a driving test, but you can deposit you life savings, max a few credit cards and blow it all in a very short space of time without any test at all.
  • #305
  • Jun 14, 2011 9:48am Jun 14, 2011 9:48am
Quoting highlander2
I think it would have been better to introduce some sort of test or exam for new traders before they were alowed to trade with leverage. Its all to easy to open an account and deposit what could be a huge amount of money with no knowledge of the market and blow the lot in no time at all.

Brokers could have been made to finance some sort of course with an exam at the end for traders wanting to open a live account. I think the problems with leverage and forex comes from lack of understanding about what it is rather than the leverage itsself.

You...
yeah true, but we make a test for forex and we might as well make one for politicians as well.

we wouldn't be in half the mess we are in if the government even knew what they were doing... currently we have 14 trillion reasons to show they don't know what they are doing either.

that puts quite a bit into perspective now doesn't it. they can't do it by their own rules and now they force upon us their rules?

You lead by example... not lunacy!
  • #306
  • Jun 14, 2011 11:03am Jun 14, 2011 11:03am
Quoting pip_seeker
yeah true, but we make a test for forex and we might as well make one for politicians as well.

we wouldn't be in half the mess we are in if the government even knew what they were doing... currently we have 14 trillion reasons to show they don't know what they are doing either.

that puts quite a bit into perspective now doesn't it. they can't do it by their own rules and now they force upon us their rules?

You lead by example... not lunacy!
Yeah, its a case of "don't do as I do, do as I tell you to do"
  • #307
  • Jun 15, 2011 1:15am Jun 15, 2011 1:15am
50:1 leverage is more than enough - if you can't make money at 50:1, then you won't be able to at 100:1.
  • #308
  • Jun 15, 2011 2:55am Jun 15, 2011 2:55am
I do not care about 1:50
I would open account with broker which offers such leverage
Coz, I take care about MM
I am more conservative
  • #309
  • Jun 15, 2011 10:27am Jun 15, 2011 10:27am
Quoting tdion
Don't matter..... TO YOU.

Speak for yourself.

How so?

Your position size is not affected by the leverage.

50 is a limit to me which I already hit, because (1) I don't keep all my funds in broker's account (2) I average up heavily.

The responses in this thread emphasize that choosing higher leverage increases risk and that is the utter bullshit.

Swap rates to my knowledge are measured by position size and not leverage.
I found a penny today. That's +100 pips for me.
  • #310
  • Jun 15, 2011 12:28pm Jun 15, 2011 12:28pm
Yeah the US brokerages want to make you think all is well with 50:1 leverage. Their pie is shrinking, what other reason would someone have to come here and say that 50:1 is enough? Please list your reasoning if you are for 50:1 leverage... why you would waste your time here?

That is the question I would like the answer to... if 50:1 is enough why do you come here to a thread to say this, why would you have any reason whatsoever to come here and say this if you are not a broker?
  • #311
  • Last Post: Jun 30, 2011 12:11pm Jun 30, 2011 12:11pm
I really dont get it 50:1 or 500:1 how does it make a difference if you manage your risk right? Especially if never holding overnight.

50:1 with 10% risk or 500:1 with 1% risk makes no difference, right?

I would rather keep my some place safer than online trading account. Temptation to overtrade seems to be the biggest problem, for me at least...
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