Punishing the United States with Margins
Most margins in the United States allows for a 100 to 1 leverage and a 1 percent margin. One standard lot to control 100,000 currencies requires traders to maintain the 1 percent margin. To fall below will mean a trader must add money to the account or the broker will sell out the position by a margin call and a trader will suffer the loss. A current proposal by the Commodity Futures Trading Commission (CFTC) to limit margins is underway as this is written. And this has happened yet again as the war against currency markets continues. Leverage is now 50:1 with a 2 percent margin, 20:1 leverage with a 5 percent margin for exotic pairs such as U.S. dollar/South African Rand and U.S. dollar/Turkish Lira. ...
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