FX and leverage regulations?

FX leverage regulations and is, what on earth does that regulation. From the summer of 2010 in trading in FX trading company in Japan, and be able to apply leverage is now up to 50 times. In addition, the summer of the following year of 2011, that of this magnification of leverage is I have entered regulations to say that up to 25-fold regulation, we are called FX leverage regulations.

When an individual is said to operate the assets in FX trading, if you are trading in Japan of FX trader, only it is not possible to Kikaseru leverage up to 25 times the margin that deposit in trading account. In regulation previously, but there are many domestic FX skilled in the art that was to sell the high leverage, regulation since it is a good idea to say that has really become necessary services that you can pursue the interests of investors.

Why when you say that? Well become that such leverage regulations enters, that it Kikaseru leverage is because is a double-edged sword. The can be their own the prepared funds or more transactions would be may be said that the charm of FX trading.

If against margin ¥ 100,000, suppose you had a leverage to 10 times. Also, please consider the US dollar was purchased at the time of 100 yen. When it became 101 yen, the ¥ 100,000 trading without leverage you will be leaving a profit of ¥ 1,000 to, when you became a ¥ 99 you will profit or loss of ¥ 1,000.

This amount will be 10 times when you are over 10 times leverage. In other words, it is to say whether or loss of profits or ¥ 10,000 of 10,000 yen. Does not go out big gains and losses in this example, earnings and are multiplied by 100 times the leverage will become to ¥ 100,000.

In other words, I funds there is a risk to say that disappears all. Because there be a Madashimo minus If you just disappear, it would be considered too high leverage is regulated.