Discussion in 'Forex' started by Surprise, Jan 14, 2010.
haha 10 to 1
FXCM will go out of business
there will be no more retail market for independents and we will need to give all our money to fund managers who promise 10% - 15% returns
sounds familiar? *cough* madoff
stupid is as stupid does
but cool instead of making $10 per pip per contract I will make $1 awesome!!! awesome!!
wait wait thats relative to the 100 to 1 now (dont ostracize me please!! I trade 100k contracts and expect to make $10 per but if you de-leverage me then I can only afford to buy 10k contracts and make $1 per and before when it was 200 to 1 I could make $20 per blah blah ... blah blah)
did that make sense? maybe someone important will read this thread?
wokka wokka wokka
All retail customers would move their accounts to the UK division of their brokers - no big deal
Will not affect those traders who opt to transfer
Pretty insane proposal
I would guess the 10-1 figure was the gov't throwing out the first pitch. I'm sure the final figure will be higher.
Although if these clowns had their way, they would force the casinos to add more balls to the roulette wheel.
Exactly. Especially stupid because even if the UK eventually adopts 10-1 it will be an eternal shell game because OTC brokers will simply setup shop elsewhere.
What makes you even think that Britain would lower the leverage for off-exchange fx?
Isn't currency trading vastly more popular over there? It is not as popular in the US which is why these fx brokers don't have any lobbyists in DC to help them.
A few months ago, the authorities made a stink about leverage then in Nov, all the brokers lowered their leverage. In any event, this sucks
In my opinion, the UK fx brokers have more sway with the authorities than the US brokers
My point remains the same. Even if Uk brokers lower leverage because of UK regulations, the shell game will simply move somewhere else.
i think it make sense put a cap on leverage in the same way as it make sense to have floor margin rules for stocks, options, futures etc.
the question is what the number should be for fx. from my experience 20:1 is sufficient for anybody who does not manage money recklessly.
So how does this process work?
At the bottom of the PR, it said something about submitting comments within 60 days...
So does that mean that we could expect some type of decision-making process to begin in early April?
If someone has some knowledge on this subject matter, it would be great to hear from you.
Look at the margin of CME currency futures like 6E (EUR/USD), it is currently $4050 to hold an overnight contract. That is excessively more than 10 to 1.
Separate names with a comma.