Comment Text:
i0-001
COMMENT
CL-03099
From:
Sent:
To:
Subject:
Aldo M N De Gennaro
Saturday, January 23, 2010 1:14 AM
secretary
Regulation of Retail Forex RIN3038-AC61
Retail Forex trading with limited gearing logically impacts the amounts 'retail traders' may trade with and commit.
By limiting gearing the practice will become less attractive.Naturally the 'benefits' are less severe losses however
the individual entering into such dealing should be educated and competent to have understood the implications
of entering into in to highly leveraged trading and have a suitale risk suitable risk profile. The reason for the the
high gearing is the underlying attraction which enables individuals to achieve similar risk/return outcomes with a
small percentage of funds relative to institutions and banks.
If this is a means to limiting losses then a better method would be a pre suitability of the the individual whereby
understanding and education is displayed and to some degree a transparent risk profile is provided.
Ultimately the decision should lie with the individua and to limit gearing would certainly reduce retail forex trading
numbers
