4/16 (Tue) Discussion about 10x leverage controversy
This is Double-Eー of Reiwa by the EA developer.
Previously, there was a discussion about reducing leverage in domestic FX accounts from 25x to
10x.
If the leverage cap is lowered,
I think the idea is to limit losses of account funds.
Japan is a rule-of-law country, so
there are many patterns where laws impose restrictions.
However,
no matter how much leverage is reduced,
I believe there will be people who lose.
So fundamentally I think it is a poor approach.
We are trading FX to increase our assets,
so rather than restricting by law,
I think we should steer toward improving literacy.
Perhaps,
the state may think that by restricting by law,
tax revenue will rise more.
However,
for us, along with literacy improvement,
maintaining a win-win relationship is best.
In reality,
considering the performance of off-the-shelf EAs,
if risk management is thorough,
there is no need to leverage 10x at all.
Now, recently,
there seems to be money lessons in school,
and such things should be taught more,
and there could be courses on starting a business as well.
In the past,
there was a sense of an “automatic tax revenue system,”
where employees did not need to file tax returns,
taxes were deducted from monthly salaries,
and the state benefited from a steady monthly flow,
such as the “aesthetic of staying with one company,”
“as a full-time employee, you could incur large debts to buy a home,”
“as a full-time employee, you could incur large debts to purchase a new car,”
and a system to sustain the monthly cash flow was established.
However,
after the bubble burst, even mega-banks failed,
side jobs became allowed, and the situation has changed completely,
and we are in an era of individuals (in the sense of freelancers).
Sorry for the digression,
from now on as literacy improves,
we will continue to publish the information you need.
Well then!
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【Reiwa no Double-E EA Product List】
https://www.gogojungle.co.jp/users/112481/products
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【Reiwa no Double-E series articles】
■EA Beginner Course
https://www.gogojungle.co.jp/finance/navi/series/1700
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About the calculation method for EA risk management
https://www.gogojungle.co.jp/finance/navi/articles/64703
Simple tips to spot fraudulent products (in the case of EA)
https://www.gogojungle.co.jp/finance/navi/articles/64738
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■ No-nonsense! Gogojan Raises Issues!
https://www.gogojungle.co.jp/finance/navi/series/1701
Where is Gogojan’s inquiry form?
https://www.gogojungle.co.jp/finance/navi/articles/64723
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■ Double-E FX Musings
https://www.gogojungle.co.jp/finance/navi/series/610
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【Reiwa no Double-E’s Beliefs】
Develop EAs by a legitimate approach,
gain the trust of more people,
and maintain a long-lasting win-win relationship,
aiming to revitalize the EA market and improve literacy.
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