Comment Text:
i0-001
COMMENT
CL-01999
From:
Sent:
To:
Subject:
mark maldonado
Thursday, January 21, 2010 5:05 PM
secretary
Proposed Margin Change
After hearing of the pending legislation concerning raising margin requirements I was moved to contact
you to express my dissapointment. The risk associated with margin trading in the forex market can be
controled through proper money management. The brokerage firms make this clear in almost every
form of communication possible including, educational seminars, webinars, emailed reminders and
disclaimers. While some may choose to ignore these suggestions their disappointment should not be
used as an excuse to take away a valueble amenity that no other market offers it's traders. Without
100:1 leverage the fractional changes in exchange rates would be near worthless. With the proper
training many should be able to use the available 100:1 leverage safely.
I 'd also like to remind you that Hong Kong had a similar 20:1 limit on margin trading in the Forex
market. This obstacle was simply overcome by tens of thousands opening accounts with brokerage
firms in other countries who welcomed their business with open arms.
By forcing this issue you will in affect guarantee hundreds of new offshore internet sites that will extend
the necessary margin to American traders. This will no doubt lead to dozens of dishonest firms opening
only to cheat and steal rather than help.
The Forex market is a 4 Trillion $ a day industry. It will not be stopped or altered by any one country's
legislation. However, one poorly planned decision can cost millions of current Forex traders their
livelihood or future plans of trading for a living.
Sincerely,
Mark Maldonado
