CFTC 101 Leverage Proposal on Retail Forex Trading
As you may know, U.S. Commodity Futures Trading Commission (CFTC) proposed regulation in early January that would dramatically reduce leverage now available to forex traders in the United States. The proposal states that" leverage in retail forex customer accounts would be subject to a 10-to-1 limitation."
Current Margin Requirement Margin Requirement at 10:1 Leverage
|
EUR/USD: $160 |
EUR/USD: $1,600 |
|
USD/JPY: $100 |
USD/JPY: $1,000 |
|
GBP/USD: $180 |
GBP/USD: $1,800 |
|
USD/CHF: $100 |
USD/CHF: $1,000 |
While we believe that increased regulation brings credibility to our growing industry, this proposal jeopardizes the freedom of individuals to choose their desired risk, directly affecting all traders who consider leverage paramount to their trading strategy.
What can you do about it?
The CFTC is seeking public comment on the proposed regulations. If you feel strongly about maintaining the leverage you now enjoy with your broker, we urge you to speak out to the CFTC. You can voice your concern by sending comments directly to the CFTC by March 22,2010.
Send e-mails to:
Include "Regulation of Retail Forex" in the subject line.
The United States Foreign Exchange Dealer's Coalition is joining traders in this fight to maintain flexible leverage and is actively working to repeal the CFC's proposal.
Forex Trading Manual
In any business or moneymaking venture, preparation and foreknowledge are the keys to success. Without this sort of insight, the attempt to make a profitable financial decision can only end in disaster and failure, regardless of your level of motivation and determination or the amount of money you plan to invest.
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