Japan plans to lower leverage for individuals as early as this spring
The cap on leverage would come down from 25:1 to 10:1 for the lowest gearing.
That would increase margin requirements by up to 150%, here we go …. ouch
Nikkei reports
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Uff… bad news for whom are trading with a japanese broker. A few weeks ago I received an inquiry from my broker (fxpro) about the possibility of a decrease in leverage desired by the European Union. It is certain that I would change without hesitation whether these conditions should become reality. To see if the European brokers will not see in more welcoming places … In my case, I use a high leverage to fade the move during nfp or similar.
Indeed Stéphane bad news, it’s doing the rounds. In the UK there are also plans in the pipe. Hopefully they’ll make some distinctions between novices and seasoned traders but it’s certainly going to affect all of us sooner or later.
The problem is going to be distinguished novices and seasoned traders. On what basis? There are people who have traded for years in pure losses. Novices? It seems to me that it would be difficult to determine who is who. With any luck, Switzerland will not follow this system. But I think we still have some good years ahead of us. And if not, I’m sure the brokers will go to more “friendly” countries with all the current guarantees.