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Thread: Breaking: ESMA finalizes new rules to govern leveraged trading

  1. #21
    Quote Originally Posted by ;
    quote I don't quite get this part highlighted. Will a 1:30 leverage make a margin call easier?
    Less leverage = The sum of money you put just to start a position/s [ie margin necessity] will go up= leaving less money free on your account balance. If your transactions go against you in the exact same time, its easy to get margin called or perhaps blow up. The majority of your money will probably be locked up in margin, instead of floating freely in the event of poor transactions.

    Quote Originally Posted by ;
    From what I understand, reducing available leverage reduces the trade size one can open comparative to their account size. Does not this reduce risk of a margin call?
    If someone doesnt care for money management, they are still likely to exchange massive lots than their account can afford, without leverage.

    At least that how I understand it.

  2. #22
    Interesting....if it does not happen today it will definitely happen another day.Its just a matter of time.

  3. #23

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