Comment Text:
i0-001
COMMENT
CL-03340
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Subject:
Peggy Silberhorn
Saturday, January 23, 2010 4:25 PM
secreta ry < secreta ry@ C FTC. g ov >
regulation of retail forex
Regarding RIN 3038AC 61 concerning leverage of retail forex accounts. Iam oppossed to the
change toa leverage of 10 to 1. I believe a trader should be allowed to determine the leverage
they can handle.
A better way to regulate is sliding scale where the larger the amount of the investment the smaller
the leverage. If investing less than 100,000 usd then the investor should be free to derermine the
leverage. If investing 100,000 to 250,000 the leverage should be 50 to 1, and from 250,000 to
500,000 leverage should be 40 to 1. The higher the investment amount the lower the leverage.
This system would insure that the larger financial institutions would put less of their capital at
risk. The smaller the capital at risk the less likely the instituion would fail.
Regulating the retail investor would be better if caps or limits were placed on the amount an
investor can take in a position. The limit should bea percentage of their total capital with the
broker.
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