Comment Text:
i0-001
COMMENT
CL-03170
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linda spector
Saturday, January 23, 2010 8:36 AM
secreta ry < secreta ry@ C FTC. g ov >
re leverage in forex trading
This email is regarding the proposal to limit forex trading to a 10-1 leverage situation, instaead of
the high leverage you can obtain at the moment.
The problem with this idea is that the people it affects are the retail traders such as myself
who only have small amounts to invest or trade with and need the leverage in order to be able to
make any money in the markets. It unfairly lumps us in with the big boys and will destroy the
livlihoods of thousands of small retail forex traders who have had no responsibility for the current
financial crisis. In addition there are funds which by definition are higher risk funds and the people
who invest in them as part of their overall portfolio have accepted the higher risk.
It is also not an effective method of dealing with the problem of the financial system as the main
problem was caused by banks being able to lend 10xdeposits and using that mythical money to
invest in derivatives of shaky debt, that is the issue what has retail forex trading got to do with
that, it wasn't that that caused the system to shake.
in addition all that will happen is that people will trade derivatives of the forex market like they do
with the stock market (cfds) in london and that will put the power to move the markets back in the
hands of the big market makers who hedge in the market place.
Governments have tried to do this before and it has had a bad effect ( George Soros and Black
Monday) learn the lesson before you do something that could have unforseen consequences.
in other words please don't do this!!!
thank you
linda spector
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