New CFTC margin limit proposal in US 10:1

[pipdetector]

OK, guys this beats the recent NFA regulations.

http://forexforums.dailyfx.com/new-c...0-1-limit.html

http://www.forexpeacearmy.com/forex-...ead.php?t=8342

According to the newest porposal of CFTC regulations they would like to impose 10:1 margin ...

Will there be any FX trading after in the USA?

[rsmereka]

10:1 beats commodities. A lot of people, including me, switched from commodities to Forex and one of the advertising features is the leverage . Like Peace Army says, say goodbye to retail Forex in the US.

Rick

[pipdetector]

At this moment this is just a proposal, I think that we need to spread the word so that it does not get passed. Personally, as a foreigner I guess I cannot influence CFTC, but US citizens may have something to say.

[forex robot arena]

We'll just keep opening brokerage accounts overseas.. (uk, swiss, etc)

[PipCop]

Speak your mind and let the CFTC know that you don’t agree with that 10:1 Leverage rule they are thinking of passing. The CFTC is looking to receive public opinion from you within these next 60 days. Don’t pass up the opportunity to let them know your concerns because they want to hear from you. There is no excuse for you to say that no one told you where to submit your comments now.

Details: http://www.cftc.gov/newsroom/generalpressreleases/2010/pr5772-10.html

You may submit comments, identified by RIN3038-AC61, by any of the following methods:

1) Federal eRulemaking Portal: http://www.regulations.gov - Follow instructions for submitting comments.

2) Email : secretary@cftc.gov Include “Regulation of Retail Forex” in the subject line of the message.

3) Fax (202)418-5521

4) Mail: Send to David Stawick, Secretary, Commodity Futures Trading Commission , 1155 21st Street,. N.W., Washington, DC 20581

Remember not exercising your right to speak is your responsibility and no one elses.

[hotsawce]

Comment submitted.

[geekguy]

One thing I believe everyone should consider here is that they are being specific about "off-exchange" transactions. I believe there are central exchanges that can process your orders, so if the brokers were to send your transactions up to the exchange, they could bypass this rule. Maybe the forex brokers could create a central exchange?

[frito]

Originally Posted by geekguy

One thing I believe everyone should consider here is that they are being specific about "off-exchange" transactions. I believe there are central exchanges that can process your orders, so if the brokers were to send your transactions up to the exchange, they could bypass this rule. Maybe the forex brokers could create a central exchange?

the centralization(regulation as in US and EU futures ) would be a total bomb (very good thing) provided keeping the 100:1 leverage of course.

Dont know where is CFTC going with this, limit even more small trader, not allow people to profit big, one can control loss if u cant u shouldnt trade. its like that $25000 day trading minimum for US stocks. Hey why not 2:1 leverage and $500000 minimum for fx spot daytrading huh? f$%^ as%^^les

[PipCop]

Comment I received via email:

I agree. I believe this is an attempt to make the forex market either less profitable or totally unusable by the small retail trader, with the intent to drive traders back to Wall Street and the stock market, which has been hemorrhaging traders to the forex market in recent years. If this goes through, people will need huge accounts in order to trade forex. It is a travesty, and must be stopped.

[dennerle]

i'm totally disappointed and against what CFTC is proposing. By limiting the leverage , what are they trying to show to the rest of the world?

That US is not a place for trading forex and trying to influence the rest of the world to "follow" them? Having such a low leverage , most people doesn't even have enough margin to sustain the trade thus resulting in margin call ? If that's the case, are they making people lose more trades instead? Well guys, think about the agenda