[0bsolete]

Just got this email from my broker:

Effective Monday, October 18, 2010 a new CFTC regulation will go into effect that limits the maximum leverage in the retail forex markets to 50:1. The new margin requirement is 2% (50:1 leverage) for the major currencies and 5% for all other currencies (20:1 leverage). Metals will be offered at 100:1. View full list of currency pairs.



The new CFTC regulation is intended to protect retail investors in the US by preventing excessive use of leverage by traders who may not have an adequate understanding of the associated risks. We support their intention and have always provided customers with the ability to employ lower leverage ratios, based on their own personal preference.

What this means to you

On Friday, October 8, 2010 at 5:00 PM ET, the margin settings in your FOREX.com account will be changed to require 2% on all major currencies and 5% for all others, one week prior to the CFTC's mandatory effective date.


Current Maximum Leverage New Maximum Leverage
USD/JPY USD/JPY
100:1 leverage (1%) 50:1 leverage (2%)
1 lot (100,000) 1 lot (100,000)
Margin requirement: $1,000 Margin requirement: $2,000



What you can do

We strongly encourage you to evaluate your account to ensure your open positions will be adequately margined once the higher margin requirement takes effect. You can check the impact this change will have by accessing the Pip and Margin Calculator from all trading platforms. We recommend that you either reduce the size of your open positions to free additional margin or increase your account balance. Add funds to your account.

[screw]

Ask me how much I care ...

[PlacidoLtd]

This is bad for the USA Forex Industry.

[Toscani]

Dodd-Frank bill are eviscerating the US Forex industry

[DickP]

This is just ludicrous