In High Leverage Retail FX Market, the Margin Call Rate is 35% and It is Difficult for Individual Traders to Survive.
16 Pages Posted: 10 Aug 2017
Date Written: August 9, 2017
Leverage control is an important issue in financial system and a challenge for financial professionals. How do individual FX investors deal with the leverage? Using a large data set from a FX social network, I find out that retail FX traders are poor at leverage control: under a survivor bias dataset, 35% accounts fail to control their leverage and have received Margin Call.
Keywords: Leverage control, Margin Call, retail FX traders
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