Comment Text:
i0-001
COMMENT
CL-00026
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Subject:
[email protected]
Thursday, January 14, 2010 5:15 PM
secretary
Public Comment Form
Below is the result of your feedback form. It was submitted by
([email protected]) on Thursday, January 14, 2010 at 17:14:55
commenter_subject: proposal for 10:1 retail forex leverage
commenter_comments: I would like to express my concern with the
proposal for reducing retail Forex leverage. From
my understanding it aims to address two things,
over speculation that caused the financial crisis
and preventing traders from losing money because
they don't understand leverage. The first problem
is that retail traders did not cause any financial
down fall, they simply don't have the capital to
move markets. Second, traders should be educated in
the markets, one idea would be to create a trader
and investment protection group that could help new
traders and force new traders to watch a video or
read a paper about the good and bad of leverage.
One can use 400:1 leverage and still be safe, as
long as he is not risking more then 2% of his total
margin or account size. There are websites that
have taken the initiative (www.babypips.com) to
teach new traders about strategy, leverage, the use
of stop loss and etc. This, if taken over by a
government body could prove to be even more
efficient and could create a few jobs in the
process. It is important to educate and inform not
regulate and ban.
commenter_name: Andy
commenter_withhold_address_on: ON
