Forex margin being lowered

Discussion in 'Forex Trading' started by rsikit, Sep 29, 2009.

  1. If anyone uses more then 100-1 margin in Forex trading, it is being set at a 100-1 starting on Nov 29th I believe by the NFA. So no more 400/200-1 as some firms offer. Still plenty of margin at 100-1. They set it at 1% for most and 4% for exotics.
  2. I knew it was a proposal I have not heard that it was approved yet. NFA can kiss my ass. I transferred my accounts to UK to avoid this nonsense.
  3. AyeYo


    Link/citation for this? I thought there were loopholes.
  4. While I believe it may be true, I cannot believe someone would post such an announcement without a link to the news release.

    I've googled and the only thing I have found is an announcement by CMS that they believe that the NFA would be reducing leverage eventually so CMS was doing so preemptively.

    Without a source other than the OP's sayso, this thread is useless.
  5. It won't mean much in the end. People with larger accounts will simply trade offshore and for micro accounts there is fxcm micro uk. It is a concerted effort to gut forex market under the pretense of "fighting volatility" and transfer funds back to wall st.
  7. By the way dipshit , obvisouly your usesless and not the thread. Just giving a heads up. Glad you look to the important places like brokers websites who advertise high leverage to gain clients. They are not going to talk this rule up until its time. But if you were to think and goto the source of where forex regulations come from you might learn something
  8. Here you go, thanks for asking like a normal person: If you read and find loopholes let me know

    Notice I-09-18
    September 24, 2009

    Effective Date of Amendments to NFA Financial Requirements Sections 11 and 12 and the Interpretive Notice Regarding Forex Transactions

    NFA has received notice that the Commodity Futures Trading Commission has approved changes to NFA Financial Requirements Sections 11 and 12 and related changes to the Interpretive Notice titled "Forex Transactions." The amendments adopt an alternative net capital requirement for Forex Dealer Members (FDMs) and eliminate the existing exemption from the security deposit requirement. These changes will become effective on November 30, 2009.

    The amendments to Section 11 revise the existing alternative net capital requirement that is based on an FDM's liabilities to customers.1 As of November 30, 2009, the alternative requirement is $20 million plus 5% of the amount of customer liabilities over $10 million. FDMs that exclusively use straight-through-processing for their customer transactions are exempt from this alternative requirement and need only maintain the $20 million minimum (unless the firm is subject to a higher requirement under FR Section 1).

    The amendments to Section 12 eliminate the existing security deposit exemption for FDMs that maintain 150% of their required net capital. This means that, beginning on November 30, 2009, all FDMs must collect a customer security deposit of at least 1% for the currencies listed in Section 12 and at least 4% for all other currencies.2

    NFA's submission letters to the Commodity Futures Trading Commission include of the revised language and more detailed descriptions of the changes. You can access electronic copies of the February 23, 2009 submission letters at (for the changes to Section 11) and (for the changes to Section 12).

    Questions concerning these requirements should be directed to Valerie Kretschmer, Manager, Compliance ( or 312-781-1290) or to Sharon Pendleton, Director, Compliance, ( or 312-781-1401).
  9. I'll tell you what, you keep your hands off of my useless, and I'll keep my hands off of your useless.

    Somehow I doubt that you're going to agree to such terms.
  10. Actually agreed! Anyways still plenty of margin to work with, we shall see how it plays out and see if they cater to it by having people go to the foreign accounts if they want more then 100-1 or not
    #10     Sep 29, 2009