If the CFTC does this, say goodbye to retail forex in the USA

[ernest8fingers]

Selective hearing, Selective thinking.

Obviously we will have to put up 10 times the money to trade. The question was, "How will this affect our margin requirments", "Will we still be required to maintain full margins against drawdowns, even though we will be paying 10X the current security deposit"

Ken must be rich-and very trusting to deposit what it will take to trade Forex if this 10-1 rule wins? To Trade 1 Standard Lot would require 10k to open and 10k to maintain-IMO. This is ridiculous amount-IMO. I would be "selectively" bailing out altogether from this market-kinda like a sudden divorce(again!)-lol.

 

[Ken Long]

Are you suggesting that they might do us the favor of allowing us more drawdown before the margin call? I do not know, and I am not sure that is desirable.

As for working a job, I have worked plenty. However, my working days are inexorably drawing to an end. There is no "go back to work" for a person of my age, regardless of my skills, experience or health. Once you get to my level, if you are not already financially independent, the only choices are to found yet-another-company, or become a trader. The last company I founded holds the rights to my commercial work, so that leaves trader.

Funny thing... my career as a technologist and inventor turned out to be far more of a gamble than any sort of honest trading could ever be. Ironic, isn't it? If I had abandoned the rat race 10 years ago, I would be in a far better place today.

At least in Forex, your rewards match the quality of your decisions and skills -- meritocracy at its purest. Not so in corporate America.

Good trading to you,

MM

I understand, I'm in much the same position. I could always wait tables, but...

What I was suggesting is that with such a large deposit our margin requirements should not be the same. In most cases a 1000 pip deposit would cover any perceivable losses. However, the Forex market is quite different from the other equity markets in that we are trading exchange rates and not tangible equities such as stocks or commodities. I really dont know what is possible with this, but like us the brokers will have to consider many different options. They will be affected by this rule at least as much as we are.

 

[Ken Long]

Ken must be rich-and very trusting to deposit what it will take to trade Forex if this 10-1 rule wins? To Trade 1 Standard Lot would require 10k to open and 10k to maintain-IMO. This is ridiculous amount-IMO. I would be "selectively" bailing out altogether from this market-kinda like a sudden divorce(again!)-lol.

No, I'm not particularly rich or trusting, especially of this market. I just like to consider the options. I think I would prefer to day trade in the US stock market without any leverage before paying 10-1 here, although longer term still has some possibilities.

 

[Ken Long]

Ken must be rich-and very trusting to deposit what it will take to trade Forex if this 10-1 rule wins? To Trade 1 Standard Lot would require 10k to open and 10k to maintain-IMO. This is ridiculous amount-IMO. I would be "selectively" bailing out altogether from this market-kinda like a sudden divorce(again!)-lol.

Ernest, you dont necessarily need 10K to maintain 1 lot unless your trading extremely long term. But still, point taken...I could see taking my manual trading elsewhere, but I kinda like these robots. I think I've learned more from them than many courses I've purchased. And MegaDroid still trades better than I do...........

 

[Music Man]

>>Megadroid

Yah, it's hard to choose between bot and manual, once you get a bot that makes money.

I don't own any commercial bots, but I've used the template from Funyoo's private area at TSF and built my own entry logic and indicators. When the settings are in tune with the market, it's really fun to watch. It trades the usual BB bounce when the slope of the adjacent band is within parameters. Otherwise, it trades the trend by reversing the buy/sell signal and using a mode-specific order management logic, so that the BB bounce trades can be market, while the trend/spike trades can be stops.

Anyway, I'm all ears -- if there is some way to make this crap work better for individual traders, I'd like to hear it. From where I'm standing, it's just another government screw-up -- Forex FUBAR

This time, I think yet-another-company will be in a some other country. It's getting time for a change of jurisdiction.

MM

 

[yoenes]

How can the goverment realy protect people to losse there money

If the goverment like realy to protect the people that they dont losse the hard earned money then the goverment have first to close the casinos .

because there is risk and there are no rulls to enter the casino or how much jou can risk .
Only that you have to be 18+ ,

sory for my bad english.

I hoop that the govermant will do wath good is for the people .


Greet you,

Yoenes

 

[Jan K.]

Governor of D.C.

This one goes primarily to Pharaoh and the AsstModerator, hopefully you read it, and all remaining members of the FPA!

Would you consider it reasonable to also address our grievances to the governor of D.C. directly? Since the CFTC is located in D.C..

I really don't know what their game is but these new regulation proposals affect ALL OF US!

Is it certain the governor knows himself what the CFTC is planning? In what proportion is the governor of D.C. to the CFTC?

What about not only sending our concerns to the CFTC but also to the governor of D.C. directly?

Would be interested about your opinion of this!

Best regards

Jan

 

[briansnj]

Again...it still comes down to the basic argument of CHOICE.

Leverage options give you the choice to select whatever level you desire.

If we only have 10:1 or no leverage even...we have NO choice.

You cannot protect everyone no matter how hard you try. Fools and their money soon part. I sympathize and do not desire anyone ill will but why should I suffer for fools? I know plenty of guys that blew out their 10:1 accounts. So how did that help them? IT DID NOT. Period.

CHOICE is always better. Period.

I want to choose from a variety of leverage options...from 400 to 0 if I desire.
You can choose to trade how you like.

See how great CHOICE is? lol

 

[spak3060]

The rule of 10:1


Hi Everybody,

When I heard about this new rule of CFTC, I really worried, because my basic strategy (TraCop-1%) has been based on the leverage 500:1. This strategy needs simultaneously to open many positions with a lot or half a lot for each of them.( If you surprised, you can follow this strategy in TraCop-1% @ Forex Factory ). If the rule of 10:1 submit as a rule, I (inspite of I'm out of US, but unified with other traders in US) and other users of this strategy need a huge investment to trade in forex, and it's impossible.
I'll send my protest to one of sites which mentioned in first page as a member of Forex Peace Army. I hope other members send CFTC their disagreements, too.

Kindest Regards

 

[Armin R.]

The Gensler Gang

Hi Everyone!

Hope you're all keeping well this weekend.
I can see that the proposed CFTC ruling has got us all a little on edge. I hate to be a wet blanket but let's try to all work together a little more instead of sniping at each other. Right now it's us against them not us against us. Remember all that stuff about a house divided against itself.
From what I read on this website it really seems to be about the issue of choice and how they're being narrowed daily by various governmental agencies for "our own good".
No matter how onerous it may be to some, we do have the right to trade at any darn leverage ratio that the brokers choose to offer us.
I feel that the only people that are losing their shirts are those that haven't done their due diligence, haven't learned everything they can about the forex and then not trade a demo account before they go live. This doesn't happen overnight and most people just don't want to take the time to properly apprise themselves of the forex. They want everything to happen overnight and the forex just doesn't work like that.
These same people have more money than brains and jump into the forex without any preparation, and think that the forex is some of a get-rich-quick-scheme, and promptly lose all their money and whine and complain about it. These are the ones that give the whole thing a bad name. Although, I will be the first to admit that no amount of preparation guarantees any kind of success in the forex, but at least it gives you a fighting chance.
I have been in this game for quite a number of years, still haven't made a fortune, still in a mini account, still doing my due diligence, still learning something new everyday and just about at the point where I feel confident enough that I may be able to make a reasonable living from the forex.
I'm in the same position as another person on this website where I am at the point that I am just too darn old to start something new and I see the forex as my only real viable option to at least make some kind of a reasonable living. Hate the stock market. It also doesn't help that I'm on disability. So I'm really between a rock and a hard place.
Then the darn NFA changes the rules and then the CFTC wants to add its two cents worth. Wonder what the third strike is going to be.
As to those people that are already trading at 10:1 leverage levels, I think its great that you can do that. I really do. The only problem is that you need quite a bit more cash on hand to trade like that. And I bloody well don't have it! I think in these hard times many others are in the same position. They may be able to get $5,000 or so together without too much trouble, maybe some sacrifices and belt tightening for the greater good but not $10,000, $20,000 or even $50,000. They really are limiting our choices. Which is not their job, no matter how good their intentions.
The people that are losing money at 100:1 ratios are going to lose it at 10:1 ratios, just quicker.
We as adults are allowed to make our own mistakes. as long as we have done our due diligence and crossed all the t's and dotted all the i's, AND NO DAM* AGENCY, GOVERNMENT OR OTHERWISE, IS ALLOWED TO TELL US DIFFERENTLY!!! No matter how well intentioned they may seem to be.
There's other things at work here and I don't even pretend to know what their real agenda is but one thing is for certain, if Gensler has his way, it will drastically change the financial landscape of the United States and maybe eventually the rest of the world.
This is not chicken feed, guys! This is really, really serious crap!! And we really need to fight this tooth and nail. For those of you already trading at the lower leverage ratios, I really do salute you and have a lot of respect for you. But I can't trade at those levels and suspect a lot of other people can't also. My only choice will be to trade offshore and if they regulate those markets in the same way I may as well say the heck with it and go live with the Eskimos.
All the very best to all of you.

Armin R.