Comment Text:
i0-001
COMMENT
CL-00263
From:
Sent:
To:
Subject:
[email protected]
Sunday, January 17, 2010 6:01 PM
secretary
the proposed regulations in the forex market
Hello
I have been trading the forex market for the past 2 years on a regular basis. There is a definite learning curve. I have had
experience previously with mutual funds, and stocks. I have a post graduate degree.
I do appreciate the fact that there are rules to regulate the brokers re: their liquidity and capital requirements. People trading
on other than family accounts should be regulated.
I have never lost a full account balance. There are many successful traders who, early, in their careers lost their entire
account balance. However, they went on to be extemely successful traders. An important new change that has been
implemented by many brokers is to have accounts with almost infinite trading lot sizes. This allows a person to trade a
penny a pip up to $50,000 or more a pip. With these small lot sizes, it enables a person to learn to trade with small account
balances-- so even if lost the amount would be small. This also allows for excellent equity management if the trader choses.
With the new proposed 10:1 leverage, the small individual investor would have two choices-- #1-- not to trade and then not
have the opportunity to make the money that they previously had the opportunity to make. #2-- move their money to off
shore accounts/brokers who might be unscrupulous and totally not regulated.
The small business person is the backbone of the US economy. With any business there is a risk. Life does not come with
guarantees. People start businesses everyday-- some succeed and some fail.
I am using two reputable brokers, Interbank fx and Oanda. I use proper equity management principles and stop losses. I
have not had problems with excessive slippage. I get requoting from IBFX, but I apprciate that as it allows me to decide
whether I will accept the new price in a fast moving market. There is no chance of me losing more than I have in my
account as it is totally automated and will close all my positions if I am at risk of losing the amount my leverage allows.
There is not the risk of selling short and having no buyers at an acceptable price as one sets ones stops and the forex market is
very liquid.
I live in California and even with earthquake insurance am apt to lose more on our home here than the risk in the forex
market. Will I not be allowed to live in California anymore as the risk is not covered ?(earthquake insurance -- has about a
100K deductible )
I am requesting that the current 100:1 leverage stay in place in the retail forex market. This would enable me to continue to
build my account slowly in a planned manner.
Thank you for your consideration
Elizabeth Dexter
5256 James Road
Santa Barbara, CA 93111
805 967 3515 home
615 374 1721 cell
