In view of Mid-Autumn Festival, this post is in advance for Friday.
Cross ref:
http://anatrader07.wordpress.com/2010/09/23/new-lower-leverage-as-set-by-cftc/
Sharing this important news from GFT:
We’ve recently learned of new leverage requirements set forth by the Commodity Futures Trading Commission (CFTC) that will change the leverage amounts available to you.
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As of 17 October 2010, all major currency pairs will have a maximum leverage of 50:1 and all exotic currency pairs will have a maximum leverage of 20:1. How The Change Affects Margin Requirements
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Prior to Change |
After the Change |
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USD/ZAR |
USD/ZAR |
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25:1 |
20:1 |
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1 lot |
1 lot |
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Margin requirement: $4,000 |
Margin requirement: $5,000 |
How This Affects Your Account
This will affect all customers who hold an account with Global Futures & Forex, Ltd. If you currently have an account, we recommend that you:
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Deposit additional funds to cover the new margin requirements on your current open positions and other trades you may make. |
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Use smaller lot sizes when you trade. You can request smaller lot sizes on your account by completing a Lot Size Authorisation form, available on our website. |
If the new requirements negatively affect the margin status of your account, you will need to apply at least one of these options to your account before 14 October to avoid liquidation of your open positions. As a reminder, your positions will be liquidated if your equity-to-margin ratio falls to 25%.
Alternatively, customers who live outside of the U.S., Japan, New Zealand or Australia have the option to transfer their account to our U.K. subsidiary. Get started by going to www.gftuk.com/trade.
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