How would this impact Retail Forex Makers with providing margin leverage for all retail traders?
Something I was thinking about and couldn’t find the answer to this specific question.
Not much, if we are talking about the effect of margin on the credit position of a broker.
it is more or less a virtual cash transaction. When you buy in the retail market you are saying:'Dear counterparty, you know what I like to make the deal that I will pay the price difference for 1000 $ when the price goes down and you will pay me the difference when the price goes up, and I can terminate that deal anytime that it suits me. I have the money, look it is in my account. [Counterparty] Okay, but when you run out of cash, we will terminate this deal.
So, there is no credit involved, just the dough on your account as there is nothing bought that cost more than what is on your account.