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Thread: CFTC MARGIN RULES GOING INTO EFFECT NEXT MONTH?

      
  1. #1
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    Thumbs down CFTC MARGIN RULES GOING INTO EFFECT NEXT MONTH?

    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.

  2. #2
    Pippier Than Thou! screw's Avatar
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    Default Re: CFTC MARGIN RULES GOING INTO EFFECT NEXT MONTH?

    Ask me how much I care ...

  3. #3
    Forex In The Blood
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    Default Re: CFTC MARGIN RULES GOING INTO EFFECT NEXT MONTH?

    This is bad for the USA Forex Industry.

  4. #4
    Pips Are My Game Toscani's Avatar
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    Default Re: CFTC MARGIN RULES GOING INTO EFFECT NEXT MONTH?

    Dodd-Frank bill are eviscerating the US Forex industry

  5. #5
    Hindsight Hero! DickP's Avatar
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    Default Re: CFTC MARGIN RULES GOING INTO EFFECT NEXT MONTH?

    This is just ludicrous



    "I came to make pips and chew bubble gum...damn, I'm all out of gum..."
    -DickP, 2011

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