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  #1  
Old 03-08-2010, 03:22 PM
forexer forexer is offline
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Default Could 10:1 be the new leverage in US Forex?

Seems the CFTC looking at this option seriously

http://www.cftc.gov/newsroom/general...pr5772-10.html
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  #2  
Old 03-08-2010, 03:24 PM
piphunter piphunter is offline
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yep. the end of the retail forex trader is coming. at least the ones who don't have a significant start up capital.
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  #3  
Old 03-08-2010, 03:25 PM
intratrader intratrader is offline
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Well I guess we definitely need to fight this one they already got it down to 100:1.
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  #4  
Old 03-08-2010, 03:25 PM
intratrader intratrader is offline
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We have 60 days. Not only does this stamp out the beginning investor and once again feed into you have to "have alot of money to make alot of money routine" but also since they are "worried" about the ignorant consumer losing all of their money, traders with larger capital required to trade stand to lose more. Instead of opening a $1,000 account and exploding it for only a grand loss. You may have to open a $10,000 which is alot harder to get access to or be willing to risk in learning the concepts of trading. And if you lose that $10,000 its a much bigger deal than the $1,000 loss.
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  #5  
Old 03-08-2010, 03:26 PM
macrotrader macrotrader is offline
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Sticking to the little man, all in the name of consumer protectionism. I hate to say it, but this country is going down the tubes fast.

Get the government off of my back and out of my pocket! I don't need no more stinkin' government protectionism bull crap.

Without the retail trader, there will be a few bucket shops out of business too.
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  #6  
Old 04-06-2010, 03:37 AM
forexer forexer is offline
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Futures. Safer anyway. Maybe those micro fx contracts would pick up some volume if the domestic retail fx industry goes tits up. Hmmm....
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  #7  
Old 04-06-2010, 03:39 AM
bluesdave bluesdave is offline
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This is very disturbing news.

I hope it gets shot down.
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  #8  
Old 04-06-2010, 03:41 AM
khorner khorner is offline
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Is this entirely bad? All this means is that instead of a $1,000 deposit for a standard contract, you will need $10,000. According to John Carter in his book, Mastering the Trade, you should trade 8 contracts per $100,000 or 1 contract per $12,500. This means you do need extra cash to trade, but it also limits risk. Based on the above formula, you probably need about $20-25,000 for a start-up account.

Another way to look at it is, if you trade 1 contract with your $12,500, you need $9,000 extra for a contract’s deposit. So $21,500 is now the new minimum required. That means $100,000 allows you to trade 4.65 or 5 contracts.

I think this may be a good thing since it would impose a limit to how far you can stretch your resources. A lot of traders here seem to trade one currency that is highly correlated to another which is correlated yet to another that they trade and so on. This, to me, is just multiplying your risk. With less leverage available, they’ll think more about which instrument they wish to trade.
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  #9  
Old 04-06-2010, 03:42 AM
erol erol is offline
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Another example of how this government has only one thought. and that is that people are too stupid to make their own choices, so the government who knows better will make it for them

I get so amazed at how people want a government to control them and take care of them

get ready as this is the start... my account is in London and away from this government
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  #10  
Old 08-08-2011, 01:48 PM
piphunter piphunter is offline
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the government intends to kick the small forex trader out of the market.
well, on the other side, an undeniably fact is that most of traders will lost money in the market whatever the leverage is.
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