Registered: Dec 2005
01-20-07 10:11 AM
IB is supposed to give 50:1 leverage in Forex but you can never have that due to the following reasons:
* 50:1 is both the buying power and the margin call. Since you can never have a trade with no drawdown, the maximum effective buying power is like 30:1.
* Leverage is reduced by half even though the risk is not greater (often lower) compared to USD pairs. Coupled with the above, the effective buying power for crosses is like 15:1.
So IB, if you say that you offer forex leverage of 50:1, give me a true 50:1. Otherwise, I will have to move to HotspotFx or COESfx. Looking forward to your reply here.