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villas

09/28/10 11:26 PM

#70023 RE: daiello #70021

And your current acct is 50:1 ???

bioscript

09/28/10 11:37 PM

#70028 RE: daiello #70021

daiello,

The change in leverage will not have an affect on me as I have an account size that can handle the $2k per std lot worth of margin requirements at 50:1. However, you must consider that those trading on a $500 account can't trade at the size they are trading now and withstand large drawdowns due to increased margin requirements. I believe that this will make a lot of traders consider whether or not it is worth trading anymore since they will not be able to trade the same size as they do now and thus their profits (assuming consistent pip gains on smaller sizes) will be lower. Time is money and thats where each person will have to weigh the opportunity costs associated with trading smaller accounts.

Regards,
bio