forex money exchangeers
Now assuming my post (this one) does not get deleted??? LOL!!! It's a very interesting discussion though I'll tell you. From a personal point of view: I don't see the reduction in leverage as being a big issue at all (please don't shoot me for saying that and who am I to disagree with 'AshFX' let's be honest). But the fact of the matter really is that all it really means is that more capital is required in order trade. I personally think that especially in the case of new traders the problem comes in when they don't have a clue about managing risk / lost sizes and, as I've noted in discussions similar to this one, it doesn't matter whether you're trading with 50 000:1 or 1:1 leverage: if you don't know how to manage risk then the end result is going to be 'tears' regardless. As to WHY the CFTC felt it necessary to reduce the maxmum allowable leverage: I do not and will not understand (and I've spent a LOT of time trying to fathom it out myself).
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