dude, I never argued for no leverage. I argue for an industry set cap on leverage. You purposely ignore my point or just dont get it... Re options, as you seem to have never traded any, there is an exchange mandated minimum margin set for futures and options. Long options need to be paid up in full while every kid can read and easily calculate the minimum required margin on short option positions. Brokers are allowed to set even more stringent standards for their clients but not lesser ones. If you now purchase an options contract then you can of course chose one that gives you a lot of leverage but your risk is clearly defined. Plus you fully paid up to your broker, which in turn passes it on to the exchange and so on. Everything is paid for, everything is fully regulated and in control. Never has a single options exchange failed. This cannot be said of various shady fx brokers who come one day and go the other, leaving all other clients on the hook. Difference is OTC vs listed...no magic here. Anything else you dont comprehend?
leverage is one of the key and core concepts of risk management, man, you really amaze me... You really seem to have some math problem. If you trade 0.1 lots on 100pip stops then you can easily deal with the 10:1 leverage that is proposed. Re your education argument, sure, thats exactly what the government is gonna do. They intend (how it works out in the end is another question) to lower leverage in the US and other industrialized countries and send the idiots, who still wanna gamble, to Uganda, the Bahamas, and Ukraine so they can unload their risk and also their savings there and in that way get educated the hard way ;-)
my goodness you're clueless "unloading"/trading through a foreign broker is the same as trading in the US. With the arbing bots it is one global market. Stop poluting this thread with your statist views. This is America, not a place for elitist wannabes like you to tell the masses ow to trade. Go back to sleep.
Leverage or not, 95% of people fail trading anyway. Do you really think people trading stocks with zero leverage will not fail? Isnât it good their trading account gives them strong feedback when they fail at $1,000 instead of massive loss at $90,000.00?
Finds this artcile laughable on the timing. It came out today saying NY Forex volume growth is starting to outpace London. Now the US is going to lose all that with this new rule! We can use that as a point to fight with. http://online.wsj.com/article/BT-CO-20100125-713722.html
I can totally imagine the panic those bucket shops are in....soon they have to close shop for good. And guess what, if those limits go into effect in the UK, US, and elsewhere the next step will be to prohibit US citizens from opening fx trading accounts in non-approved countries. A public outcry but soon after all the ducks are gonna shut up and eat the food given to them....