Comment Text:
i0-001
COMMENT
CL-01309
From:
Sent:
To:
Subject:
Matt Bennett
Wednesday, January 20, 2010 10:31 PM
secretary < secretary@ C FTC. g ov >
Regulation of Retail Forex
To whom it may concern,
In response to the proposed
RIN 3038-AC61
"leverage in retail forex accounts being subject to a
10-1 regulation"
It is of my opinion that this is being considered due to reckeless traders abusing the leverage given
to them, they make the choice to do so which means that they also make the choice to incur heavy
losses if their over leveraged positions in currencies move against them.
If a trader can't handle it he/she shouldn't be trading.
This action would destroy the businesses of my own forex trading and that of several profitable and
methodical traders I am in direct contact with.
If people are complaining about it, that's because they shouldn't be trading. However the right to
choose should be maintained in all cases.
If anything I feel the regulation should be similar to the leverage offered by futures brokers, but
100-1 in my opinion is an excellent tool to those who are skilled and can handle it.
For example I am able to hedge the currency value of my stock portfolio with very little capital tied
up to do so.
Perhaps the leverage given should be based on trader skill level, which can only be determined by
profitability. This type of leverage system is used by many stock trading rooms.
Since most people lost their accounts right from the start the beginners could be given 10-1, and
based on a % profitability be given more leverage.
It would be wise to consult with profitable forex traders on the issue, rather than the complaints of
novice traders that shouldn't be involved.
Matt Bennett
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