Is this true…the above I mean, that is was set at 50:1 in October as I thought it was and IS it trying to be changed again? Thanks
The CFTC’s 50:1 leverage limit for major pairs went into effect in October 2010. There has been no indication that any official discussion is being had about reducing that limit. Given that this one just took effect, it would seem like a good assumption that they will at least give it some time to see how things shake out, especially since they have also added quite a bit of disclosure requirement for the brokers.
Leverage is a wonderful tool and a nasty trick. Learning to manage leverage properly is a lesson that has to be learned if you want to earn your stripes in the investing community. That’s the beauty of this game…the leverage. Otherwise it would be as boring as bingo. If this proposed regulation actually becomes reality then the US firms are simply going to lose more and more business to foreign brokers. The CFTC needs to stop trying to nurture this industry. They need to stick with finding Fraud and Scams versus trying to limit leverage.
Not to be rude but if you are a trader you will need to know this info which means personal research. The answer was listed 2 post up on rhodytrader’s post (hint: 50:1). You need to conduct much more research on this topic for CFTC firms or noncftc firms; international or domestic; ecn v. dealing desk; etc.
So Basicaly its just the matter of time and all the world will implement 10:1 laverage or im wrong?
I think you are wrong. I think what it means is that we in the US will be hampered but I believe if you look at the off shore platforms they will run 200-1, 400-1 or even 500-1 giving people outside the US a distinct advantage.
60% of all businesses fail within the first year. If you treat this like a businesses I think you will hit at least that average or better but then being a newbie I have nothing but my research to base that on. The government can’t make all businesses or all traders successful but they need to all us to try, to succeed or fail on our own. In this business we have the advantage at this time over being able to go into business with minimal start up funding. I wonder who really is behind taking that away from us.
The Government/controlling organizations are a convenient excuse as someone to blame but they don’t do these thing, they represent someone in the background. I am not as offended with them as i am with the people behind the scene whoever they are. who stands to gain by driving the little guys out?
Well, take a look at their names. The current US CFTC boss is Gary Gensler, a Democrat. That’s the answer to your question.
No, the difference between parties is non existent. Bush spent roughly 8 trillion dollars more than he took in during his 8 years, O’bama is spending roughly 1 trillion dollars a year more than he is taking in. Parties are a scam that distract us from what is happening. If I want to bother assigning blame, I want to know who is the money behind the actions, not the front names.
The point of my earlier reply to Kuzia is that I don’t think this will be global, that is unless the world banks are behind it. I also see it as a disadvantage for us in the US.
Leverage: I don’t use leverage and my account is growing roughly 1% per day. Just think if i used 500:1 leverage… oh my!