New margin requirements for Forex

Quote from chipmunk:

LOL

I never trade above 6:1 margin...it's called "risk control" you should try it.

100:1....oh well you'll be out of the game in a few weeks.
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6:1?! hahaha.

Is this a joke? Why in the hell do I want to put up 8x the amount of money to accomplish the SAME damn thing. It's meaningless. Maybe for you since you obviously haven't got a clue.

Hell, years ago I was on 2:1 margin and was a bigger danger to society than ANYTHING NEAR what Forex gives me. IMO less leverage can do just as much damage due to the idea that it's 'ok' and 'not going to hurt as bad'. Bull. It's a morale hazard for idiots like that.

If you understand the vehicle, there shouldn't be a problem.
 
Quote from athlonmank8:

It's unreal. I figured at least someone in the FOREX thread would have a clue. I guess I over-estimated this place. hah.

Wouldn't be the first time............
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Quote from athlonmank8:

It's the concept.

Some ass-clown crashes the mortgage market (and over-leverages himself), sends the market into the shitter and now they think this is gonna change it.

Here's an idea, instead of limiting leverage let's focus on what the REAL problem was.....shitty mortgages and illiquid derivatives.

Now I suffer.

Just felt like bitchin because now I have to cut back on all the drugs and hookers i'm buying just to put up a little more margin in my forex acct.

:D
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You, obviously, have no clue as to why these new margins went into effect if you believe it has anything to do with the an "over-leveraged" mortgage market.
 
i'm a bit suspicious why there's been a reduction of leverage

here in British Columbia, Canada - 'the best place on earth' - according to the licence plates
changes in how fx is defined/regulated has meant a company has to open a physical office
in BC which is why fxcm did not renew its licence
but more than that, i can no longer open an account with any US or UK fx broker who often
state on their site they don't accept apps from bc residents, likely similar will occur for US
residents and there may be a reduction in the UK, alpari offers 500, fxcm 400 ?
i did speak to avafx Ireland, Cyprus who assured me they would accept my application, likewise
'Russian' brokers tho a British Virgin Islands broker declined

as to leverage, the 6E euro fx and other globex currencies have a daytrading margin at most
futures brokers of 500 - $500 for the $125,000 contract and amp has an even higher margin
for the ES at $400

personally i don't think leverage is anyone's business but mine, and financial crisis leverage
had to do with obtaining loans to provide additional leverage

think of spread betting when it comes to fx and leverage
 
too much leverage is the #1 killer of retail forex accounts. they should cut the max leverage to 20:1 on majors. Its all smoke and mirrors that trick newbies into thinking a ton of leverage is a good thing.
 
Quote from cstfx:

You, obviously, have no clue as to why these new margins went into effect if you believe it has anything to do with the an "over-leveraged" mortgage market.
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Are you serious? All this regulation never went into effect until after things went to hell. How about pre-2007?

I mean seriously. Don't blow smoke up my ass.
 
Quote from FXPimp:

too much leverage is the #1 killer of retail forex accounts. they should cut the max leverage to 20:1 on majors. Its all smoke and mirrors that trick newbies into thinking a ton of leverage is a good thing.
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oh 100:1 is fine ... why risk more capital than needed? I'd rather buy all the zhu zhu pets in all the walmarts in the midwest with the cash I save over 20:1

btw anyone need a zhu zhu pet? You can buy one from me on ebay for $40 :D

leverage is only dangerous if you hold onto your position ... just trade the momentum or scalp and then leverage will be your friend

serving you up quick pips
 
Quote from athlonmank8:

Are you serious? All this regulation never went into effect until after things went to hell. How about pre-2007?

I mean seriously. Don't blow smoke up my ass.
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It has nothing to do with an over-leveraged mortgage market. Bucket shops themselves are not leveraged, they just extend you leverage knowing you will blow up. These new regs were put into effect after a raft of complaints and charges made against these firms. It is about reigning in an unregulated, wlid west trading model.

It has nothing to do with firm leverage and market exposure and risk of firm default.
 
I don't really understand all your answers. If any of you believe that 100:1 or 50:1 leverage will cause blowouts then can you say how large your stops are and what the number of consecutive losses you expect? Because the size of the profits/losses per lot doesn't change regardless of the amount of money you paid for it.

If you need to double your money just to break even once you have a 50% loss, then let's suppose someone doesn't want to lose more than 1/3 or 33.4%. So, assuming $100 loss 10 times in a row means you'd lose $1000. This means you'd survive if your total amount was $3000.

Since you can trade 1/10 micro lots with FXOpen, it means you can trade with any amount you can imagine. You could calculate an amount you can trade with less than $100 or even $50. I just don't get these messages at all.

Fact is, for people who can actually use a calculator (lol), or see the profits/losses in real time in their platform, the changes in regulation mean absolutely NOTHING.

The one thing it does do, which I don't like, is to prevent you to use smaller amounts of money in a mini lot account when you're just testing ideas. I find I need the pressure of testing with real money to notice much more detail about what's going on. Fortunately for me, I got to a point where I have sufficient experience where I can still notice more details in charts when I'm trading only small amounts now in a micro lot account.
 
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