Why Do Some Retail Traders Hate Sensible Regulations?

[cowmadagan]

Piphog has ten examples of when max. leverage is 100:1 by default. (that means without your choice in this sense, not default on a loan default)
That must have taken like....a few minutes to find.

For everyone who's looking to learn and doesn't know, if you have a maximum of one position for one lot open at a time and you have the full amount of a single lot deposited, this forced leverage idea is ridiculous. In case you didn't get that, if you open a mini account with 10K, then because a single lot is also 10K you are not increasing your leverage at all (especially if you are using your position as a hedge against your margin currency). For example, if you have 10K USD and you anticipate it losing value against the CAD, then you can compensate for the incurred loss in CAD buying power by opening a single lot short USD/CAD position.
Now what our good Pharaoh meant by the car thing was that we have the choice to keep our leverage low or not to. Everyone can keep it low by using a small number of lots. Every one can also 'hit the brakes' in two ways; one is with a stop loss order, and the other is a stop loss decision (quitting forex). If you make either of these choices, you would NEVER allow your broker to 'force' extra leverage on you, beyond drawdown to lot size.
I really think your cause should be 'regulating maximum numbers of lots to account balance/margin (pick one)' rather than leverage, as leverage has two parts making it ambiguous.

 

[Agent86]

Great One

I have been reading with interest piphog's opinions, and watching the responses. I am, in Forex, a newbie, but it doesn't take a newbie to see what is the issue. We seem to have someone who is worried about his fellow traders and thinks the Government should protect us. Hmm. My opinion is: I am now a big kid, I'm potty-trained, I wear big-guy clothes. If I go into Forex and blow ALL my funds, It's MY F---ing business, not the governments! Or any other bleeding heart. What I would have government do is LEAVE ME ALONE!
To the best of my knowledge there has never been a successful Government program designed to help anyone! What I have to do is admit I screwed up, do a proper analysis get some more money and try again, but for Christs sake don't go whining to somebody else to bail me out!
Singlemalt

I KNOW, thats what I've been trying say.

But you said it better and shorter then I did LOL

Nice Post