10:1 could be the new leverage rule

Discussion in 'Forex' started by Surprise, Jan 14, 2010.

  1. dhpar

    dhpar

    you should not trade 6E with $4k account - that's my point.
     
    #11     Jan 14, 2010
  2. I agree with that and when they made the last rule this past Nov. about the 100-1 margin for majors and 25-1 for the exotics, they say they wantesd to keep it inline with the imm futures like you mentioned above. But the 10-1 is ridiculous. I am not sure if we are allowed to comment as retail traders to the cftc but I am going to find out and when I do I will post.
     
    #12     Jan 14, 2010
  3. opt789

    opt789

    Believe me I won’t argue with you, $4k is much too low for a swing trade, but for short term day traders it is probably not that big of a deal. 100 to 1 is too much, 10 to 1 is too low.
     
    #13     Jan 14, 2010
  4. dhpar

    dhpar

    fair enough. equally i won't argue about 10:1. i was mentioning that 20:1 seems more reasonable...
     
    #14     Jan 14, 2010
  5. Simex

    Simex

    Excuse me. How long would this take to be implemented?

    Would brokers still offer very low margin for day trading? What would the IM be for daytrading something like 6E?

    Cheers.
     
    #15     Jan 14, 2010
  6. The question I have is that would American use foreign firms to trade then?
     
    #16     Jan 14, 2010
  7. dhpar

    dhpar

    A. 1 day


    B. with 10:1 12.5k
    with 20:1 6.25k
     
    #17     Jan 14, 2010
  8. dhpar

    dhpar

    there would always be some crap brokerages in some crap countries which some undercapitalized people would use - of course.

    but that would not be a concern of the US taxpayer...
     
    #18     Jan 14, 2010
  9. Surprise

    Surprise

    I guess it will take few months untill they make up their minds , and it is for spot forex not futures i guess ...
     
    #19     Jan 14, 2010
  10. new leverage rule for spot FX needs tweaking if it ever becomes implemented.

    They should impose tighter leverage on those trading more lots per position bcuz THEY are the ones that have the power to move the market at will.

    Heres an example of the concept:

    500-1000 lots per trade --> 5: 1 leverage

    250-500 lots per trade -- > 10:1 lev-----

    125-250 lots---------- --> 20:1 lev-----

    67- 125 lots---------- --> 30:1 lev-----

    35-67 lots---------- --> 40:1 lev-----

    17-35 lots---------- --> 50:1 lev-----

    8-17 lots---------- --> 60:1 lev-----

    4-8 lots---------- --> 70:1 lev----

    2-4 lots---------- --> 80:1 lev----

    1 mini - 2large lots----- --> 100:1 lev

    Im in no way saying those are the values that should be used, but you get the idea....

    ....feel free to give your opinions on this type of leverage scale
     
    #20     Jan 14, 2010