Comment Text:
i0-001
COMMENT
CL-01714
From:
Sent:
To:
Subject:
Adrian Gaudencio Ababa
Thursday, January 21, 2010 10:47 AM
secretary
Regulation of Retail Forex
Dear Sir
/
Madam,
RE: RIN 3038-AC61
I'm
writing with regards to the the issue above.
i commend on the CFTC's work to protect the small investors/retail traders like us.
& yes, some of the suggested changes would provide some protection.
unfortunately, with regards to clause on leverage, i strongly believe will work towards the
detriment of the US economy.
As part of the proposed regulations, it is stated: "leverage in retail forex customer accounts would
be subject to a 10-to-1 limitation,"
which means 10:1 leverage would be the maximum amount allowed for all Forex traders in the
U.S.
An example below illustrates this:
Maximum Leverage under Current Regulations
USD/CHF
100:1 leverage (one percent)
1 lot (100,000)
Margin requirement: $1,000
Maximum Leverage under Proposed CFTC Changes
USD/CHF
10:1 leverage (10 percent)
1 lot (100,000)
Margin requirement: $10,000
based on the example above, a lot of small investors will not be able to learn how to trade & invest
in Forex effectively.
most traders learn the ropes of the trade by starting with small accounts & as they mature &
progress, they start trading in larger accounts.
but based on this suggested clause, it will force all the Forex trade business out of America & into
the other parts of the world to America's detriment.
I stand behind the belief that an individual should be given the freedom and right to choose the
amount of leverage that is appropriate for that individual's desired risk, and that this basic principle
of 'choice' is in jeopardy by the proposed ~.C...F.~-..C_..r.~g...U!..a.~!.o..~?..s
..
please re-consider this clause.
Best regards,
adrian
ababa
