OK, I apologize. Thought you were in favor of limiting leverage. Got a little riled up at another forum before I came here...
No worries. When the rule was first proposed, I ranted. The whole thing is bullshit. But from where I stand, it could have been a lot worse. It's definitely open season on retail specs
Yeah, and hopefully they'll get too busy with other things and just leave it at 50:1 (and perhaps brokers will find some loopholes to get back to 100:1). I'm still amazed (well, not really) that Fannie/Freddie didn't get touched by the financial "reform" bill but they're going after the inconsequential retail FX market.
Yep. It's all smoke and mirrors. Leverage ratios at the GSE's and Big Banks went untouched. But throw the little guy under the bus. Typical.
it seems the regulators have no issues with HFT but with 100:1 which most people don't use. you'll only use 100:1 for daytrading forex scalping/hedging other than that. i'm guessing some competitors not offering 100:1 margins are complaining to the CFTC. exactly leverage on banks and market makers same. unchanged. retail traders don't play the same rules and have a disadvantage. able to trade with higher margins is for professional traders and is a competitive edge. just like the pattern daytrading rule by the SEC in 2002,,it's just so retail traders deposit 'more money' to participate. and b esides most retail clients don't daytrade. even if they have more than $30,000 in their account. daytrading is mostly for small accounts who can't make a living investing. i doubt it;s to protect retail clients.
Correct...mandating that any FX Broker that wants to do business with US citizens must register with CFTC (and thus complying with new leverage requirements) They have the authority to do that.