Comment Text:
i0-001
COMMENT
CL-02883
From:
Sent:
To:
Subject:
[email protected]
Friday, January 22, 2010 5:21 PM
secretary
Regulation of Retail Forex esp with regard to leverage
Hello:
Re: R1N 3038-AC61
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 registered and 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 extremely 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 while putting only small account balances at risk. This also allows
for excellent equity management if the trader chooses.
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. Also many people working in these brokerages would lose their jobs,
another cause for jobs to be exported overseas.
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 re quoting from IBFX, but I appreciate 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 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 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
