Only 33:1 leverage for forex? That's crazy! My broker allows me to trade with 100:1 leverage!

Whoa, calm down there, cowboy. We restrict the amount of leverage you are allowed in your C2 Model account so that trading-system subscribers can more easily perform an apples-to-apples comparison of trading systems across various asset classes. Yes, it's true that traditionally retail forex brokers allow access to 100:1 (or even 200:1 leverage).

Keep in mind: there is nothing stopping you from trading with this much leverage in your real brokerage account. Nor is there anything stopping your subscribers (or AutoTraders) from using whatever leverage their brokers allow. Leverage is just another word for describing how much cash in your account you need to hold open a position of a given size. If your broker allows you to lever up, and you think that's a good idea, you can certainly do that in your real-life trading account. (And yes, we understand how that will boost your returns on account cash, as a percentage, just as it will magnify your losses as a percentage.)

In summary: do not fret about the 33:1 leverage restriction. This restriction allows buyers of trading systems to reasonably compare forex systems and futures systems (and stock systems). No one is stopping you or your customers from trading with higher leverage in their own accounts, if you or they believe it is a wise idea.

Have more questions?