Comment Text:
i0-001
COMMENT
CL-01858
From:
Sent:
To:
Subject:
D Power
Thursday, January 21, 2010 1:38 PM
secretary
Ref: Badly conceived changing in leverage rules for the Forex Markets is the
equivalent of fleecing the poor to give to the rich
Ref: Badly conceived changing in leverage rules for the Forex Markets is the equivalent of fleecing the poor to
give to the rich
Dear Sirs,
I have a small account with a USA Forex Broker. This account allows me to take advantage of forex trading and I
can trade with 100 ¯ 1 leverage. My total risk to my account is the actual balance on my account. Changing the
leverage will not change the risk to my account.
However, it will greatly reduce my ability to trade, regardless of risk and potential of the trade. When I take a
trade, I have a stop loss that I am willing to lose, as the trade goes my way I put my stop loss to brake-even. Thus
I have no risk to my capital but an I can acquire what ever profit the market is willing to give me. With no risk to
my initial capital, I am free to search for new trading opportunities. By trading this way I can make around 2 pct a
day, and perhaps one day aspire to a holiday or helping other family members. If the leverage is decreased from
100:1 to 10:1, I will not be able to trade full stop. I will be forced to accept the 0.5 pct the bank pays me on a
yearly basis for cash deposit and the bank will be the only one trading my money.
So the proposed changes to the leverage regulation will simply exclude the small guy in favor of the big
institutions, banks and wealthy individuals, who will be the only ones allowed to trade.
Thus under the pretext of helping the poor you will be giving the "privilege to trade" only to the rich, regardless of
ability, therefore destroying in one go our dreams.
Best Regards
D Power
