New Leverage Law for FX Trading (Video)
In recent years, the foreign exchange (“FX”) market has drawn increased attention from the public. With forex regulators now noticing this trend, they’ve tried to slow it down by lowering leverage. In theory, by lowering leverage in forex, investors will be more protected against risk and loss. Though this is partly true, low leverage also HURTS the yields for both forex traders and investors. Since this is such an important issue, we have provided a forex video to help educate our readers. Before we get to the video, let’s take a look at some of the key points below: Key Points of Forex Leverage Video 1. Forex Investors and Traders have been Weary of Increased Regulation in the FX Markets 2. Legislation has Lowered FX Leverage to 100:1, and Now are Trying to Make it 10:1 in Forex 3. Regulated Forex Brokers in the USA are Setting Up Offshore Offices to Keep High Leverage Available 4. Foreign FX Brokers doing Business in the USA can Still Offer Higher Leverage to Investors and Traders 5. The NFA has a Goal of Protecting Investors, and they are Regulating FX Leverage to the Lower Risk of Loss As you’ll see in the video, there is really nothing to worry about. Though forex leverage may decrease to 10:1 within the USA, the offshore FX markets will not be affected. This will still allow traders to take advantage of high leverage, as long as their working with FX brokers outside the USA. Want to learn more? Take a look at the great forex video below. Sorry about the advertising pitch, but its well worth the watch… Scroll down, click play, and enjoy!
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