Plus500.com

oscarra

2nd Lieutenant
Messages
1,154
Lastly, I read that the European regulators are requiring maximum leverage to be lowered significantly across a bunch of different asset classes - how do you guys deal w this? Put up a bigger deposit or just move to a different broker outside EU...feel like if it's move to a different broker I might as well avoid any of the European CFD firms and just go offshore immediately.
No big deal, with a 100 :1 leverage (long time Fx standard) the broker borrowed you 99% of trading funds, with a leverage of 30:1 you still get 97% (hope I got that right :rolleyes:

Needless to say the higher the leverage, the faster one will learn about margin calls, unless you have some magic fortune crystal ball ?

Mean time cfd provider show number of their retail clients % performance, unfortunately still on loss side, Plus500 indicate 80.6 % of their clients lose, others show minus 82 %, 79% etc…(who knows what assets)

…best stick to highly regulated environment also consider a trip to Forex Military School
 

Johnno26

Recruit
Messages
18
No big deal, with a 100 :1 leverage (long time Fx standard) the broker borrowed you 99% of trading funds, with a leverage of 30:1 you still get 97% (hope I got that right :rolleyes:

Needless to say the higher the leverage, the faster one will learn about margin calls, unless you have some magic fortune crystal ball ?

Mean time cfd provider show number of their retail clients % performance, unfortunately still on loss side, Plus500 indicate 80.6 % of their clients lose, others show minus 82 %, 79% etc…(who knows what assets)

…best stick to highly regulated environment also consider a trip to Forex Military School



There are lots of reasons why higher leverage is best and doesn't mean higher risk.

For example, I'm a scalper and am often in alot of trades, this is how my EA works and at 30:1 it just wouldn't work.

But even as a normal trader, what if you wanted to enter a 1 trade on cable to catch a few pips on a breaking out.

- My risk is always limited with a 5 pip stop loss (£50) but now my margin requirement is £3333. If my balance is £2500, I'm only risking 2% of my account in that trade. But I dont have enough margin to enter the trade at 30:1. Arrrrrrrrrrrrrrrrrrrrr! Why did they change leverage! If I do this at 500:1, its a £200 margin

With 30:1, you can only concentrate on one or two trades at a time, are forced to significantly reduce your position sizing are forced to take a longer term position in the market and not scalp.

I've been checking out ASIC brokers. I think this is still a really good regulator and I don't have to change my strategy!
 

oscarra

2nd Lieutenant
Messages
1,154
I've been checking out ASIC brokers. I think this is still a really good regulator and I don't have to change my strategy!
True, some of them also advertise quite a lot on fpa scam alert page….for free :D greedy guys
…best is joining Wall Street Traders, these days they are making money like never ever before (no bs)
 
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