Are the days of high leverage over?
Will over seas brokers every be forced to lower leverage to less then 100:1?
Will over seas brokers every be forced to lower leverage to less then 100:1?
If the are going to be forced, that is not necessary a bad thing. At least the 1:500 to 1:3000 nonsense will be finally stopped
Yes. I agree nbdtrading in regards to brokers that have leverage that high. It is ridiculous having leverage 1:500 and 1:3000 (I have never seen a broker offer 1:3000). I have never traded with leverage higher then 100:1 (mostly 50:1) Most of the people trading with higher leverage then this simply do not understand leverage, but that is besides the point.
Lowering leverage to 50:1 (in the united states and all of its residents) is one thing, but lowering to 10:1 would ruin the retail forex market.
Is this something that is happening sooner then later? As the retail Forex market grows faster and faster?
It is to the point that any US resident that wants to trade with an offshore broker company has to use a broker that is governed by the CFTC, which also has a minimum leverage set to 50:1. This will soon follow suit with Canada and as most countries do, follow what the US does.
This is something that will inevitably affect all other countries in regards to Forex leverage.
Also, considering the forex industry is the most volatile market in the world, yet also the market with the highest leverage does not make sense.
Regardless of the fact that the forex market is the most liquid market in the world. The new york stock exchange offers 2:1 leverage with a maximum of 8:1. Yes, it is not nearly as liquid. So why make a market that is more liquid and more volatile have higher leverage?
This is something that is bound to come to an end.
Even though I know, high trading leverage is risky, but till now I have to use high trading leverage in my live trading account. As, high trading leverage facility so I am using 1:400 trading leverage from my 1[SUP]st[/SUP] day of live trading. By the way, when my trading equity will double from my trading balance definitely then I will use 1:200 trading leverage. Because, I don’t like to depend on only high trading leverage. Even, I am taking advantage of high trading leverage.
Can you please show us some results?
I am curious how does a traders account that trades 1:400 live from day 1 looks like
You are not going to see his account - that post was not posted by a trader (see the last sentence)
I don't think that they are over. There will be always people trading for hope not for assessment of risk
I don't think that they are over. There will be always people trading for hope not for assessment of risk
You are right
That is why I am hoping that the law will prevent people being fooled into ludicrous leverages
I do not think that days of high leverage now over. Brokers offer you different leverage , you can use if you manage it . As I some times do trading with high leverage using bonus from forums. I want to get experience of risky trading too. Normally I use average leverage for my own investment.
Why would anybody try high risk trading? Suicide wish? High leverage should be banned
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HI,
I have recently been reading that the CFTC is pushing to have US brokers lower leverage even further from 50:1 to 10:1.
This causes obvious problems for retail Forex traders in the US.
This is all caused from the aftermath of the Swiss bank closing at the beginning of the year and crashing the Swiss franc. (putting brokers out of business)
What this means is that any US resident that wants to trade retail Forex with an overseas broker has to have a broker that is governed by the CFTC which would limit there leverage to 50:1 anyways. (now maybe even 10:1)
As retail Forex gains in popularity the question is; AS the subject says. "Are the days of high leverage over?"
- Forexmmm