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Thursday, October 22, 2009

US NFA New Ruling - Reduce of leverage levels


Hi everyone,

Did you know about the new NFA ruling ???

Here is a simple rundown:

What are the new margin requirements?

CFTC approved NFA amendments to Section 12 of NFA rule book, which requires FDMs to collect a margin deposit of 1% of the notional value of the positions held in the US dollar, British pound, the Swiss franc, the Canadian dollar, the Japanese yen, the Euro, the Australian dollar, the New Zealand dollar, the Swedish krona, the Norwegian krone, and the Danish krone and 4% of the notional value of other positions.

This simply means that we will be required to put up more margin to open a new position or hold on to an existing position based on currency pair.

When does the new rule TAKE effect?

The NFA requires FDMs to comply by November 30th.

Calculating Your New Margin?

Just watch this video





"People who buy headlines eventually end up selling newspaper."

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