Comment Text:
i0-001
COMMENT
CL-02409
From:
Sent:
To:
Subject:
Tom Collins
Friday, January 22, 2010 1:18 AM
secretary
10:1 Leverage
HI,
I cannot believe the proposal to limit retail Forex leverage to 10:1.
The simple solution will be to open an overseas account to bypass
US Rules - thus costing US jobs in the Forex industry and banking centers.
The impact goes deeper with US tax collections reduced, as many foreign
governments do not report earnings.
Perhaps a better plan would be to have graduated leverage based on capital in
account. Under $2,000, give traders a 25:1 or 50:1 leverage base. For accounts
of $5,000 or maybe starting at $10,000 open it up to the full 100:1 leverage.
This proposal will hurt professional Forex traders uder the guise of protecting them.
They know how to limit losses and have money management plans in effect
which mandate how much to put into a trade.
If you want to slow losses, then put a Hard Code into the software to limit losses
to 50 PIPs. My loss limit is set at 10, plus spread.
I would bet that those responsible for this inane rule have never traded Forex.
Recapping, the 10:1 rule will cost thousands of US jobs and millions of US tax
dollars, It will only hinder the retail Forex trader until we can get an overseas
account set up.
Sincerely,
Tom Collins
Forex Trader
