What worries me is this: "The agency said it will periodically review these parameters to determine if they need to be adjusted." So it seams to me that 50:1 is just temporary solution and it can go even lower.
"These rules of the road will help protect the American public in the largest area of retail fraud that the CFTC oversees: retail foreign exchange," CFTC Chairman Gary Gensler said in a statement. I think this is true, how many 1k accounts have been blown up because of too much leverage ? 50:1 should be enough andshould help traders to enter the market properly capitalized. Anyway, there will always be some foreign broker with 1000:1 leverage ready to open an account for whoever is interested.
Yes thank god for that. I was constantly blowing up my 1k accounts and now i feel much better. I only wish they would banned trading altogether (forex futures stocks) , that would protect me even more.
Curious about this too. With firms like Dukas offering 100:1, do they readjust leverage for US clients or just refuse to deal with them?
I'm sure they'll get their 10:1 goal sooner or later... 50:1 is a surprise though considering what they originally targeted.
It's tough to sell leverage under what is offered on the CME. They will lose the spot business offshore just as they have with CFDs.