Comment Text:
i0-001
COMMENT
CL-00302
From:
Sent:
To:
Subject:
Frank Hagenson
Monday, January 18, 2010
8:32 AM
secretary
Regulation of Retail Forex
To whom it may concern,
I wish to state my view that the proposed regulation that will limit all
retail forex customer accounts to 10-1 leverage is an unnecessary burden
on the majority of forex traders who use leverage responsibly.
I feel this regulation will hurt those who need high leverage and can
use it responsibly, while at the same time doing very little to protect
those who cannot.
Furthermore I feel this measure will drive experienced traders away from
U.S. brokers to ones where the CFTC has no jurisdiction and will
therefore hurt the U.S. industry.
I myself have less than 2 years of trading experience and have access to
100-1 leverage currently, but I never use anywhere near even 10-1
leverage in real terms.
To use even this much would leave me just 1 losing streak away from
blowing up.
A bad trader will loose their money with 10-1 almost s quickly as 100-1,
while someone who is educated, patient and controlled can manage high
leverage with low risk.
Regards,
Frank Hagenson.
