Comment Text:
i0-001
COMMENT
CL-02128
From:
Sent:
To:
Subject:
C.B. OKaan
Thursday, January 21, 2010 7:20 PM
secretary
Regulation of Retail Forex
Dear Secretary,
On January 13, 2010, the CFTC announced proposed new
regulations concerning retail foreign currency transactions.
Many of the proposed changes would implement important
consumer protection regulations, which we as small traders
firmly favor. However, one of the proposed changes would
radically lower Forex leverage from 100:1 to 10:1 for all
NFA and CFTC regulated Forex firms.
Under the proposed rule, here are some examples based on
trading 10,000 USD:
Current
Margin Proposed
Margin
Currency Pair
Requirements*
Requirements
EUR/USD
$142
$1,420
GBP/USD
$163
$1,630
USD/JPY
$100
$1,000
*Current margin requirements based on rates as of Jaaauary lPth, 20 l0
The impact of these new requirements for a FOREX trader
could be significant. Under existing rules and based on
present day exchange rates, a $10,000 account could buy or
short control just over 700,000 EURUSD. With the new
proposed rule, the same account would only be able to buy
or short 70,000 EURUSD, significantly affecting the results
of the trade and could wipe up the small traders and only
will allow the big traders and capital bank institutions to
stay.
We already are trading with daily margins of hundreds just
because of the 100:1. Winning or losing margin of those
kinds of trades are only $10 for 1 mini lot of trade which
only controls the $1000. If the ruling changes from 1:100 to
1:10 small daily trades will be no longer available to trade.
As usual small investors will be wiped out to leave the place
to only big investors. Besides, Other countries including
European small daily traders will still stay in the same
exchange margins. If your new regulation takes place, we,
as American small traders will be no longer to compete with
others any more. Instead of; as of today having only $1000
available in our trade accounts, we will be force either close
our accounts or deposit $10000 just one mini lot to trade,
which may bring only $10 win on 10 pip change in currency
pairs.
Please reconsider the regulating the Forex leverage to 100:1
for everybody as of most of the NFA and CFTC regulatedi0-001
COMMENT
CL-02128
Forex firms are applying today instead of proposed 10:1.
For more information please contact the MB Trading, or
other well known and trusted forex trading firms.
Regards,
C.B. Okaan
Small account owner as public
