My thinking in picking that number was that its still incredibly ridiculous to trade anything with 33:1 margin, but its more conservative than the 100:1 margin some forex brokers offer?
Forex market needs this high leverage because the forex prices move very little relative to stocks, futures and options. Stocks are low leverage instruments but they move a lot (often move 10% or 20% in a single day and 5%, 2% movers are everywhere.) If one actually made 2% (without margin) a day (1% on margin) for 250 trading days in a year, an initial stake of $10K would grow to $1.4M in one year. 33:1 margin is very low for the forex market. Please reconsider this margin. Because of the nature of the forex market, 100:1 margin is low. 200:1 margin is high. The more the movement of the underlying instrument, the less the leverage required and the less the movement of underlying instrument, the more the leverage required.
