It may seem dumb, but it's coming from someone who saw stuff happen through the years, official agreements and all... The spot forex market seems from time to time too nice to be true. It's relatively new to us, regular people, so from time to time, at night, i ask myself... Will there ever be a day when someone will come and say, Spot Forex is now available only to high net worth individuals and corporations and banks ... bla bla bla .... like it used to be before.....? Are any of you having doubts this could not go on for a long time? I may be paranoid. At least i hope i am!
To regulate the Global nature of Forex, might be difficult. I know for years it was closed to retail. But after they have gotten a taste of this, it will be tough to shut it down. If lawsuits and consumers do what they did to equities, perhaps there could be a PDT rule here in the USA for Forex Traders as a politicians response to consumers losing their life savings to daytrading.. You will notice many countries regulate how their residents and citizens can participate with trading and investing in the global markets for equities, check Sweden, as one country that I know of for an example. Just my opinion. Michael B.
Thanks for your response, i am not from the USA so could you explain what the PDT rule stands for? Anybody else? Any other opinions?
Pattern Day Trading...25k miniumum...Government picked a bad solution compared to other solutions they could have chosen, but isn't that usually the case? Michael B.
Alex, I've thought the same thing as you're thinking. I think, perhaps one day is coming when the whole world will be under one financial system. In that day there may not be different currencies (to trade) but, if you are proficient at trading, then there will probably always be something to trade. As far as size limits being put on forex, two things: the PDT rule is for those who make OVER a certain number of trades (limited to 5 in a 5-day period) - not an expert on it but click here for more info. but, remember, that with the PDT rule, the min limit only went to $25k... before "retail" forex came into play (in which there is supposedly over 13,000,000 market participants), average trade size was considered probably in the millions of units per trade (in 1 "lot" measurement times X-# of lots. Lots are 100,000 units, so 100+ lots could easily be traded - not the single-unit, 1000-unit, 10,000-unit, etc., sizes we see today.). So there's no comparison. Plus, you got to figure that you can still trade as little one stock at a time if you want, while institutional traders may trade in the 100,000-share+ blocks. No, I think retail forex as we know it will never go away until currencies (plural) go away. The big retail fx brokers do the big block-money trades, I think we are actually just trading their own money, they themselves trade with the Interbank at market rates that we see reflected on charts/prices. if you're going to stay up at night there's much better things to think about than if you'll be able to trade forex. become the best trader you can be, then there will always be something to trade, AND you may someday have the BIG industrial-size bucks to trade FX with anyway. retail forex was always open, you just needed to have the money to access the Interbank with - that was probably in the $100s of millions of dollars in your trading account. Best, Gamal Saham Ruach
and another thing. i am a european citizen and own an IBC in the cayman islands. Does the PDT rule apply to me?
no (sKaLpZy I see my guarantee came true, you came out of the chat forum hibernation of 12 hours, what happened, did you get tired of posting pics?).
I think some more regulation of the boiler room fx shops may be in order. That said, there are numerous threats to fx trading, principally from socialistic schemes to impose global taxes to fund "poverty relief," otherwise known as throwing good money after bad. One of the left's favorite tax schemes is an international financial transactions tax, probably similar to the UK's hated stamp tax, only run by the same bunch of crooks that handled the Oil For Food fiasco. Others have proposed an international tax specifically on currency transactions. They think it would kill two birds with one stone, namely generate money for the UN crowd plus put a crimp on "speculation." And remember, when the income tax was initially proposed, voters were assured it would never be more than two or three percent.
For how long will we be able to trade the Forex? Forex was for a 'selected' few who had piles of dough. They have been creaming each other. Then they found 'us' the greedy have-nots. They said to themselves: let's cream this bunch of greenhorns. They lobbied hard and Nixon gave them a helping hand. Hightech and the net made it possible that Forex is now for everyone with a few bucks. Ready to be creamed by the gurus/snake oil salesmen/mentors/system builders/voodoo price predictors/new age prophets/... Forex will end when 1-'judgement day' comes. 2-*x%$#@& comes (the name of the new world 'unified' currency ) 3-Untill there are no more greedy people on Earth Betting on 2 and/or on 3 is a loser's bet! But that is jmho. :eek: