While most Forex traders have reacted negatively to this new regulation, Scott Shubert, CEO of Trading Mastermind sees this as a very minor challenge for Forex traders
Boulder, CO (PRWEB) October 19, 2010
The new CFTC/NFA regulation that caused sheer panic to many US Forex traders is taking effect today. By now, all Forex Traders must have heard about this new regulation. But do they really understand how it works? The new regulation reduces the leverage available at US Forex brokerages to 50:1. The question remains, is this going to make or break your business?
In 100:1 leverage ratio, a trader would be required to place $1000 in deposited funds for every $100,000 standard lot traded. In 50:1 leverage $2000 in deposited funds would be required for the same standard lot.
While most Forex traders have reacted negatively to this new regulation, Scott Shubert, CEO of Trading Mastermind sees this as a very minor challenge for Forex traders. He says that being successful in Forex trading with 50:1 leverage will depend on how well you manage your risk. He believes that the only problem with high leverage is if uneducated traders use poor risk management. Scott is a successful Forex trader who has been recognized as one of the few legitimate trainers in the Forex trading industry for more than five years and is the author of Yin Yang Forex Training System which is one of the most well received and comprehensive Forex training systems currently available. His latest video http://www.youtube.com/watch?v=7yOOebtOAJ0) thoroughly demonstrates how to get around the challenge of this new CFTC regulation and how to properly manage the risk involved. For more information about Scott Shubert visit his website http://www.forextradingseminar.com/yinyangcourse.php to learn how to master the art of Forex Trading.