400:1 Leverage

Discussion in 'Forex Brokers' started by jkhek21, Mar 27, 2009.

  1. Abuot the only thing correct in this post seems to be the spelling.
     
    #31     Mar 31, 2009
  2. FJMcC

    FJMcC

     
    #32     Mar 31, 2009
  3. I made a similar point about safety of funds a few pages back (not as detailed but the basic idea is the same), I think it's a valid argument but as Ivan mentioned I don't think that's the motive behind the magnanimous offer these shops make of 400:1 leverage or the reason most people accept the offer :)

    As for forex being an outlet for reckless gamblers out to make a fast buck you could very well be right, maybe that explains the high failure rate, but I wonder was that their original intention? For a gambler there's got to be more enjoyable ways to have a punt rather than in front of a computer screen watching prices flutter around aimlessly, casinos offer free drinks and more! Maybe the title 'trader' gives the compulsive gambler an air of respectability?
     
    #33     Mar 31, 2009
  4.  
    #34     Mar 31, 2009
  5. http://www.blue-fx.co.uk 700:1

    http://www.igforex.com/ 700:1

    Both FSA regulated (light touch), very very similar websites. :D

    And many more, some are clearly in trick jurisdictions ( Belize, Panama, Cyprus e.t.c) so your money is probably gone before you even trade. If any of you are ever desperate to use these guys, please use some type of prepaid debit/credit card. I bet by the end of the year someone will be offering an eye watering 1:2500 :eek:
    http://www.100forexbrokers.com/high-leverage-brokers
     
    #35     Mar 31, 2009
  6. FJMcC

    FJMcC

    Ok, ok, you are too clever for me I think, thanks for the compliment though. Very rarely have I ever posted anything, about any subject, andd been almost completely right!!!!

    P.S. Is it time to start bailing on the risk currencies for the short term yet :) I think maybe it is!!!!!!!!!!!!
     
    #36     Mar 31, 2009
  7. Others may offer 400:1 leverage. You however, are probably the only firm advertising it in bright red, 72-point font size, as if it is some kind of great benefit, rather than insane money management.

    Smart traders prefer firms that don't attract clueless traders that might under the right conditions, imperil the broker.
     
    #37     Mar 31, 2009
  8. I would love to put on a huge position at a shop like this at 4pm friday with very little capital, spin the wheel that it goes way beyond what they can collect from me or make some serious coin and withdraw the winnings.
     
    #38     Mar 31, 2009
  9. lol, you're insane if you seriously believe any bucketshop is going to put themselves in 'peril' by a) having that level of exposure or b) paying out if they've auto executed, they'll just bust trades!

    FXCM did exactly that a few years ago after a ~200 pip gap on an NFP release, they just reversed everything.

    Toooo funny :D


    Here's what Refco's Daniel did 3 hours after the same NFP release on 6th August 2004, he reversed $94,800 of gains!

    [​IMG]
     
    #39     Apr 1, 2009
  10. It ain't gonna happen unless they've hedged your trade, see above statement, $94,800 of very serious coin just vanished at a few strokes of Daniel's keyboard like it never existed!
     
    #40     Apr 1, 2009