Comment Text:
i0-001
COIMMENT
CL-02460
From:
Sent:
To:
Subject:
Jon
Friday, January
22, 2010 5:13 AM
secretary
Regulation of Retail Forex
I am a Forex trader who uses a US-based broker for his trading. I wanted to
express my deep concern with the proposed reduction of leverage available to
Forex traders.
I do understand something about traders' psychology. When today a 100:1
leverage is available, a beginning trader can invest $400 to be able to test
out his or her ability. Most chances are that s/he will lose this money -
and this is a sum many people can afford to lose. Under the proposed
regulation, s/he will lose $4,000, which for most households is a
substantial capital. I am confident that the proposed rules will make many
aspiring retail traders' families miserable.
As far as a small retail trader like myself is concerned, the scenario is
clear: The moment the leverage is reduced, I move my trading capital
elsewhere. This is going to be a lose-lose situation: I will lose access to
a good broker, and the American economy will lose access to my (and
thousands other traders') capital. The only ones going to profit from the
proposed leverage regulations are the economies of Australia, UK, etc.
I plead to seriously re-consider the proposed reduction of leverage in the
retail Forex industry.
Yours sincerely,
Jon Shubin
