ASIC’s CFD product intervention order takes effect | Metals Mine

  • ASIC’s CFD product intervention order takes effect

    From asic.gov.au

    ASIC’s product intervention order imposing conditions on the issue and distribution of contracts for difference (CFDs) to retail clients takes effect from today. The order strengthens protections for retail clients trading CFDs after ASIC found that CFDs have resulted in, and are likely to result in, significant detriment to retail clients. ASIC’s order reduces CFD leverage available to retail clients and targets CFD product features and sales practices that amplify retail clients’ CFD losses, such as providing inducements to become a client or to trade. It also brings Australian practice into line with ... (full story)

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johnvr
Mar 30, 2021 5:53am
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95% of retail traders need to be treated like children for they know not what they do.
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peterhenders
Mar 30, 2021 6:28am
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with a 5k account and a lot size of 1.0 there is just enough room to open ONE position. F*ck ASIC and I'm going offshore
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peterhenders
Apr 1, 2021 5:15am
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Quoting Guest
{quote} And why would you trade a standard lot size with a 5K account? That's poor risk management.. You cleary don't need to use all the leverage avaible, the fact that ASIC is restricting to lower leverage is a good thing to undisciplined traders.
Poor risk management? Or a breakdown on a large account using small deposits. Risk management is all about the capital that you have set aside for trading , its not there to impress idiots. We go over Australia boarder and we have our lot sizes back to 1:500 so the only gain for ASIC will be a lot less retail traders trading from local brokers. If you want to make it in forex YOU have to know both hands, left and right and dont think that YOU will ever make it worrying about your f'n risk.
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peterhenders
Apr 1, 2021 5:17am
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Quoting LloydOz
{quote} Just "poor" risk management? Some may be inclined to think of a slightly stronger superlative which may be banned in a family friendly forum such as this. Many months ago (a year?) when these changes were suggested, I was appalled. I am now firmly smoking the same pipe as johnvr in post #3 here. Sigh.
Read below LloydOz you might learn something
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ieltsMike
Mar 30, 2021 10:44pm
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Quoting johnvr
95% of retail traders need to be treated like children for they know not what they do.
Yes, but this applies in many areas of life and it should be my choice and not big brothers.
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pridolfx
Apr 1, 2021 5:03am
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Quoting LloydOz
{quote} Just "poor" risk management? Some may be inclined to think of a slightly stronger superlative which may be banned in a family friendly forum such as this. Many months ago (a year?) when these changes were suggested, I was appalled. I am now firmly smoking the same pipe as johnvr in post #3 here. Sigh.
i open 1 lot on 1: 500 with 1000$ account.no problem
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aquavox
Mar 31, 2021 6:50am
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I'm really not sure what ASIC's endgame is with this interference?
Their statement "it brings Australian practice into line with protections in force in comparable markets elsewhere..."
I have not been able to verify. has anyone?
most of the savvy Aussie brokers who want international business have set themselves up offshore ( Vanuatu, NZ etc...)
it is a limitation of Free Choice.
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ieltsMike
Mar 29, 2021 7:05am
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Quoting Ffoorreexx
They treating retail traders like small children.
Agree, I am not so happy about it. Especially the 2 to 1 on crypto...ridiculous!
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Trader#9CA6
Mar 31, 2021 7:38am
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Quoting peterhenders
with a 5k account and a lot size of 1.0 there is just enough room to open ONE position. F*ck ASIC and I'm going offshore
And why would you trade a standard lot size with a 5K account? That's poor risk management.. You cleary don't need to use all the leverage avaible, the fact that ASIC is restricting to lower leverage is a good thing to undisciplined traders.
Reply
Ffoorreexx
Mar 29, 2021 6:37am
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They treating retail traders like small children.
Reply
LloydOz
Mar 31, 2021 10:44am
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Quoting Guest
{quote} And why would you trade a standard lot size with a 5K account? That's poor risk management..
Just "poor" risk management? Some may be inclined to think of a slightly stronger superlative which may be banned in a family friendly forum such as this.

Many months ago (a year?) when these changes were suggested, I was appalled. I am now firmly smoking the same pipe as johnvr in post #3 here. Sigh.
Reply
LloydOz
Apr 1, 2021 10:10am
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Quoting pridolfx
{quote} i open 1 lot on 1: 500 with 1000$ account.no problem
Yep, sounds about right. Actually, you could probably open up about 3 full gold contracts with a 1000$ account, depending on the gold price on the day.

Pretty neat, huh?
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TacticalTrad
Apr 7, 2021 7:29am
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On a side bar. What will the implications be for open positions once this "de-leveraging" takes place? I have long term positions open at 1:500. Once it goes to 1:20, what happens to open positions?

cheers
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Rhesus
May 2, 2021 1:37pm
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Why do some brokers, with several licenses, NOT allowing EU/AU citizens to trade with their offshore entity (e.g FXCM)? - redirecting to their ASIC/FCA entity.

On the other hand, IC Markets and LCG do allow EU citizens to open an account under their offshore company...
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Trader#EB4F
Apr 1, 2021 9:37am
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Quoting peterhenders
{quote} Poor risk management? Or a breakdown on a large account using small deposits. Risk management is all about the capital that you have set aside for trading , its not there to impress idiots. We go over Australia boarder and we have our lot sizes back to 1:500 so the only gain for ASIC will be a lot less retail traders trading from local brokers. If you want to make it in forex YOU have to know both hands, left and right and dont think that YOU will ever make it worrying about your f'n risk.
OK, so at 1:20 (it is what is widely advertised) you are only able to trade 1 (say) gold contract . That's 100 oz. A little tight, but moving on.

Working with this, at 1:500, you are able to trade 25 gold contracts. That's 2,500 oz. On a ("large") $5,000 account, you are in control of more than USD 4 million bucks of gold.

Is my maths right?
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Trader#3768
Apr 1, 2021 2:16pm
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Most traders are either too lazy, stupid or not willing to learn and pay for someone to teach them. These traders do not understand leverage and will blow their accounts. The remainder, mostly struggle , but some realise that actually being taught to trade correctly is a massive advantage and eliminates years of losses and wasted life. These are the guys that make money every week and for them leverage is massively important.

The fools will always loose, no matter what the game. All this does is mess it up for traders that can actually trade.
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