CFTC Forex Rules In Effect October 18, 2010
- Thread starter fxguy77
- Start date
Info on what constitutes Major Pairs
Well, I did some research and from what I can tell, it appears that there is a way to know how to tell which currencies are major (subject to 50:1 leverage) and which are exotic (subject to 20:1 leverage).
You can read what I found here:
At OANDA, It's Business as Usual After CFTC Leverage Ruling -- NEW YORK, Sept. 2 /PRNewswire/ --
and here:
Margin Rules - OANDA FXTrade
The summary of the two linked articles is that if BOTH of the currencies in the currency pair you want to trade are in the following list, then the trade is subject to a 2% margin requirement (or 50:1 leverage). Otherwise, the trade will be subject to the 20:1 leverage requirement (it appears that Oanda will have to reduce their exotic leverage requirement from 25:1 to 20:1).
Here is the list from Oanda:
AUD, CAD, CHF, EUR, GBP, JPY, USD
NZD, NOK, SEK, DKK
XAG, XAU
So, for example NZDUSD is 50:1, USDCHF is 50:1, USDZAR is 20:1 since ZAR is not in the list above. XAUUSD is 50:1, EURJPY is 50:1, but USDSGD is 20:1.
This is likely going to be the case since Oanda has been making announcements about how they are not going to be affected and it is business as usual: therefore, we can conclude with some certainty that the current Oanda margin rules can be relied on to determine whether a currency pair is major or exotic... at least for now.
Well, I did some research and from what I can tell, it appears that there is a way to know how to tell which currencies are major (subject to 50:1 leverage) and which are exotic (subject to 20:1 leverage).
You can read what I found here:
At OANDA, It's Business as Usual After CFTC Leverage Ruling -- NEW YORK, Sept. 2 /PRNewswire/ --
and here:
Margin Rules - OANDA FXTrade
The summary of the two linked articles is that if BOTH of the currencies in the currency pair you want to trade are in the following list, then the trade is subject to a 2% margin requirement (or 50:1 leverage). Otherwise, the trade will be subject to the 20:1 leverage requirement (it appears that Oanda will have to reduce their exotic leverage requirement from 25:1 to 20:1).
Here is the list from Oanda:
AUD, CAD, CHF, EUR, GBP, JPY, USD
NZD, NOK, SEK, DKK
XAG, XAU
So, for example NZDUSD is 50:1, USDCHF is 50:1, USDZAR is 20:1 since ZAR is not in the list above. XAUUSD is 50:1, EURJPY is 50:1, but USDSGD is 20:1.
This is likely going to be the case since Oanda has been making announcements about how they are not going to be affected and it is business as usual: therefore, we can conclude with some certainty that the current Oanda margin rules can be relied on to determine whether a currency pair is major or exotic... at least for now.
Dirk58
Sergeant
- Messages
- 435
hi guys
I just went through this and ya, the US government doesn´t care really about the little ones. Same here over Europe but they are not that far but I would never put my hand into fire they won´t discuss this either.
So I decided to find a way around this because they force me to. I found some experts about offshore business and ya, they are great. You can get your own business without any hussle. I´ve recieved an free .pdf for this so perhaps you´re interested too before it´s getting worse (because yet there is no light at the end of the tunnel).
Just give me a private mail and you get the .pdf.....
I just went through this and ya, the US government doesn´t care really about the little ones. Same here over Europe but they are not that far but I would never put my hand into fire they won´t discuss this either.
So I decided to find a way around this because they force me to. I found some experts about offshore business and ya, they are great. You can get your own business without any hussle. I´ve recieved an free .pdf for this so perhaps you´re interested too before it´s getting worse (because yet there is no light at the end of the tunnel).
Just give me a private mail and you get the .pdf.....
Hi Dirk, facing same issues and pursuing offshore myself. I would appreciate your file and hopefully I would be abel to share soem useful stuff from what I collected already. oisilva@msn.com
Lynn Irons
Recruit
- Messages
- 1
Request for Your pdf File
Dirk58
I would appreciate your pdf file. Thnak you. E-mail address is:
ironslynn@comcast.net
Dirk58
I would appreciate your pdf file. Thnak you. E-mail address is:
ironslynn@comcast.net
Hi Dirk. I can't IM you for some reason. I'd also love to get a copy of the pdf for offshore businesses. Email is sbose@ais.net.
Thanks!
Seems the brokers are already offering work arounds
I use FXDD and just got this mail from them notice the bottom paragraph, they seem to have no problem moving US accounts offshore, wonder how long this will last till bigbrother closes whatever loophole they found that enables them to do it.
CFTC Reduces Leverage for U.S. Retail Forex Traders
Effective October 18, 2010, the leverage offered to retail customers of U.S. foreign exchange dealers will be reduced to 50:1 for major currencies and 20:1 for all others. What will this mean for you? It means your trading power will be cut in half if you trade the major currency pairs and a further reduction in the minors. Over the past few years we have seen successive reductions in leverage, hedging eliminated and FIFO accounting imposed on retail traders. Although these changes are intended to bring certainty to the regulatory environment, certainty is no substitute for the freedom to trade in the world's deepest market in the manner that most efficiently fits your trading strategies and goals. FXDD values your business and will work hard to ensure that you trading needs are met.
If this change in leverage will affect your trading, FXDD wants you to know that FXDD Malta Limited (www.fxdd.com.mt) will continue to offer variable leverage, hedging, your choice of offsetting orders, fully segregated accounts held at JPMorgan Chase in New York and the same professional service you have come to expect from FXDD. FXDD Malta is a fully licensed brokerage firm with the Malta Financial Services Authority with access throughout the European Union and is compliant with all MiFID directives.
I use FXDD and just got this mail from them notice the bottom paragraph, they seem to have no problem moving US accounts offshore, wonder how long this will last till bigbrother closes whatever loophole they found that enables them to do it.
CFTC Reduces Leverage for U.S. Retail Forex Traders
Effective October 18, 2010, the leverage offered to retail customers of U.S. foreign exchange dealers will be reduced to 50:1 for major currencies and 20:1 for all others. What will this mean for you? It means your trading power will be cut in half if you trade the major currency pairs and a further reduction in the minors. Over the past few years we have seen successive reductions in leverage, hedging eliminated and FIFO accounting imposed on retail traders. Although these changes are intended to bring certainty to the regulatory environment, certainty is no substitute for the freedom to trade in the world's deepest market in the manner that most efficiently fits your trading strategies and goals. FXDD values your business and will work hard to ensure that you trading needs are met.
If this change in leverage will affect your trading, FXDD wants you to know that FXDD Malta Limited (www.fxdd.com.mt) will continue to offer variable leverage, hedging, your choice of offsetting orders, fully segregated accounts held at JPMorgan Chase in New York and the same professional service you have come to expect from FXDD. FXDD Malta is a fully licensed brokerage firm with the Malta Financial Services Authority with access throughout the European Union and is compliant with all MiFID directives.
Shenanigan
Recruit
- Messages
- 6
Hello Sir,
Please email me the PDF on offshore entities I would really like to look into this and have it ready for the future when needed. My email is smuscella184237@comcast.net. Thank you very much
