Yes. Mr. Obama has officially lost it.

[toast1985]

Wait until the other Federal Regulations hit....Credit Card Acts, ect.

 

[throwedindagame]

Originally Posted by stateofsingularity

Basically, it means that the government will now limit your leverage to 10:1 (contra: the current 100:1 or 200:1).

Leaving aside the property rights issue (ie my right to gamble with my money as I see fit) and the issue of freedom of choice regarding risk, there is also a practical financial implication.

Currencies move in PIPs or points in percentage as low as 1/100's of a percent. To gain from these tiny moves, investors use lots and lots of leverage. While leverage can amplify their gains, it can also amplify their losses.

But this is a decision that individuals should make for themselves. Not the hordes of bureaucratic flunkies in DC.

You didn't simplify it enough. I think once NTers know what leverage is, your post is self-explanatory.

For the NTers who have 0 knowledge of trading:

Leverage
This post is basically stating that there is a proposed limit to how much "loaned" money you can trade with. People borrow money to amplify gains. Sohe's basically saying in the past he could have 1,000 in his account and trade like someone who had 200,000. Now, he might only be able trade with $10,000for every $1,000

Some of you with even an ounce of business acumen who know nothing about trading might see the benefit in this, but if you still don't:

Let's say i want to buy a pig. A pig cost 10 bucks and I can sell it for 12 bucks giving be a $2 profit. What if I borrow $1000 dollars, I can then sell100 pigs for $12,000. I return my $1000 invesment because the money was not mine to begin with. I profit $2,000 instead of a measly $2.

This is leverage in the simplest term. Corporations use it and so do traders.

The gist is that the government is now telling individual traders what to do. I mean, I can understand regulating the investment banking trading desk...butstronger regulations on the retail guys?

I do agree with your rant. Anyone who opens a trading account signs all the risk forms and knows what they are getting in too. There are greater factors thateffect the market then the retail forex trader

.

 

[i am furby]

Originally Posted by toast1985

Wait until the other Federal Regulations hit....Credit Card Acts, ect.

What will be the outcome of that?

 

[jwong]

Interesting... please tell me more.

 

[rockybalboa25]

Originally Posted by CasperJr

mann shut up and go to bed

So are you mad that you don't understand what he is talking about or what?

Another case of nobody wanting to hear anything bad that has Obama's name attached to it, even if its valid.

 

[toast1985]

Originally Posted by I am Furby

Originally Posted by toast1985

Wait until the other Federal Regulations hit....Credit Card Acts, ect.

What will be the outcome of that?

Regulations applied to the major Credit Card companies -over the limit rates, applied interest rates, cash advance rates, ect...Majority areintended to help, but from a Retail/Consumer POV, it essentially limits a lot of special interest rate promos - 3-24 month interest free on multiple CreditCard account types.

 

[kicksfiend]

NOOOOOOOOOOOOOOOOO

People trade forex because they don't have 25k to trade stocks, so now you gonna take that away from them too? F you Obama.

 

[rsdplaya]

i will agree more or less that it probably shouldn't be regulated, but at the same time, the people, no, more the financial institutions that did this tosuch a severe extent is a part of what put us in the financial situation that we're working to get out of. Leverage can be a great financial instrument butit is extremely dangerous and shouldn't be used loosely.

 

[RustyShackleford]

Originally Posted by RockyBalboa25

Originally Posted by CasperJr

mann shut up and go to bed

So are you mad that you don't understand what he is talking about or what?

Another case of nobody wanting to hear anything bad that has Obama's name attached to it, even if its valid.

It is not because of Obama that poster turned on the OP. It is because the OP assume everyone would know exactly what he is talking about.

 

[thecalculator]

Originally Posted by stateofsingularity

Basically, it means that the government will now limit your leverage to 10:1 (contra: the current 100:1 or 200:1).

Leaving aside the property rights issue (ie my right to gamble with my money as I see fit) and the issue of freedom of choice regarding risk, there is also a practical financial implication.

Currencies move in PIPs or points in percentage as low as 1/100's of a percent. To gain from these tiny moves, investors use lots and lots of leverage. While leverage can amplify their gains, it can also amplify their losses.

But this is a decision that individuals should make for themselves. Not the hordes of bureaucratic flunkies in DC.

I understand the implications this has on investors, BUT,our current financial crisis is one result of having maximum leverage ability on part of the buyer.

*Despite that, Obama is contradicting himself big time with a contractionary policy here, and his expansionary policy with his new deal thingy.

 

[josebronx]

at the 1st pg

 

[18key]

[h3][/h3]

Yes. Mr. President* Obama has officially lost it.
Fixed. Give the man some respect.

 

[edasvilla]

Originally Posted by So Authentic

Originally Posted by stateofsingularity

Basically, it means that the government will now limit your leverage to 10:1 (contra: the current 100:1 or 200:1).

Leaving aside the property rights issue (ie my right to gamble with my money as I see fit) and the issue of freedom of choice regarding risk, there is also a practical financial implication.

Currencies move in PIPs or points in percentage as low as 1/100's of a percent. To gain from these tiny moves, investors use lots and lots of leverage. While leverage can amplify their gains, it can also amplify their losses.

But this is a decision that individuals should make for themselves. Not the hordes of bureaucratic flunkies in DC.

x2

 

[8tothe24]

They need to apply this to the FED and the FED only. When people realize that their money isn't worth the dollar is printed on, the gig is up. Thx forsimplifying Throwed. I need to step my investing game up and started.

 

[coolnificent]

Originally Posted by ThrowedInDaGame

Thank you for explaining

 

[keithsweatsjordans]

Wow this thread is like a lulz rollercoaster

 

[kahlow]

^ lollercoaster

 

[imperialh8]

Originally Posted by CasperJr

mann shut up and go to bed

mann shut up and go to bed

 

[mrgrapes85]

Originally Posted by imperialh8

Originally Posted by CasperJr

mann shut up and go to bed

mann shut up and go to bed

eh, no.

 

[quig707]

Yall NTers are pathetic. Why come into a thread that is way above your head, and get on OP because you dont understand it? He is not your teacher, he does notowe you an extremely dumbed down explenation. You know where the back button is. Take your ignorant selves and retreat back to some fapping thread you feelmore at home in. OP's trying to make a legitimate point. This place gets worse by the day.

OP I hear you, on a personal investment level it is frustrating, but on the other hand, over leveraging is what lead us into the crisis we're still in now.What would you suggest as a better alternative?

 

[sneakaholic4life]

Originally Posted by Quig707

Yall NTers are pathetic. Why come into a thread that is way above your head, and get on OP because you dont understand it? He is not your teacher, he does not owe you an extremely dumbed down explenation. You know where the back button is. Take your ignorant selves and retreat back to some fapping thread you feel more at home in. OP's trying to make a legitimate point. This place gets worse by the day.

OP I hear you, on a personal investment level it is frustrating, but on the other hand, over leveraging is what lead us into the crisis we're still in now. What would you suggest as a better alternative?

well from the way he posted, it seemed he wus prepared for a full board discussion although aware of the fact that only a sharp few were familiar to thistopic, why didn't he at least make cliffs or explain in simpler terms, he sounded like a grumpy ol @#$#$% who needed some sleep so dats why he wuz told off

 

[imperialh8]

Originally Posted by sneakaholic4life

Originally Posted by Quig707

Yall NTers are pathetic. Why come into a thread that is way above your head, and get on OP because you dont understand it? He is not your teacher, he does not owe you an extremely dumbed down explenation. You know where the back button is. Take your ignorant selves and retreat back to some fapping thread you feel more at home in. OP's trying to make a legitimate point. This place gets worse by the day.

OP I hear you, on a personal investment level it is frustrating, but on the other hand, over leveraging is what lead us into the crisis we're still in now. What would you suggest as a better alternative?

well from the way he posted, it seemed he wus prepared for a full board discussion although aware of the fact that only a sharp few were familiar to this topic, why didn't he at least make cliffs or explain in simpler terms, he sounded like a grumpy ol @#$#$% who needed some sleep so dats why he wuz told off

Does he deserve it?

 

[sneakaholic4life]

Originally Posted by imperialh8

Originally Posted by sneakaholic4life

Originally Posted by Quig707

Yall NTers are pathetic. Why come into a thread that is way above your head, and get on OP because you dont understand it? He is not your teacher, he does not owe you an extremely dumbed down explenation. You know where the back button is. Take your ignorant selves and retreat back to some fapping thread you feel more at home in. OP's trying to make a legitimate point. This place gets worse by the day.

OP I hear you, on a personal investment level it is frustrating, but on the other hand, over leveraging is what lead us into the crisis we're still in now. What would you suggest as a better alternative?

well from the way he posted, it seemed he wus prepared for a full board discussion although aware of the fact that only a sharp few were familiar to this topic, why didn't he at least make cliffs or explain in simpler terms, he sounded like a grumpy ol @#$#$% who needed some sleep so dats why he wuz told off

Does he deserve it?

no but at least u should see why ppl mite tell him off the way they did

 

[tony ayooo]

Originally Posted by So Authentic

Originally Posted by stateofsingularity

Basically, it means that the government will now limit your leverage to 10:1 (contra: the current 100:1 or 200:1).

Leaving aside the property rights issue (ie my right to gamble with my money as I see fit) and the issue of freedom of choice regarding risk, there is also a practical financial implication.

Currencies move in PIPs or points in percentage as low as 1/100's of a percent. To gain from these tiny moves, investors use lots and lots of leverage. While leverage can amplify their gains, it can also amplify their losses.

But this is a decision that individuals should make for themselves. Not the hordes of bureaucratic flunkies in DC.

 

[ph3n0m3n0n]

So is this basically saying I can borrow less money?