Comment Text:
i0-001
COMMENT
CL-03488
From:
Sent:
To:
Subject:
james mcdonald
Sunday, January 24, 2010 9:51 AM
secretary
Regulation of Retail Forex
Dear Mr. Secretary,
As a small interested trader in the foreign exchange market, I am sending this note to express concerns
over the margin rates for these markets. At one time ( with certain dealers ) you could be margined as
high as 400:1. This always seemed excessive to me therefore I had my account established at no more
than 100:1. In the contracts I am interested in this translates to an easy way not only to figure profit and
loss but to curtail my risk through the use of proper money management ( one pip equals one dollar I use
a mini account ). I personally believe more needs to be done concerning the " get rich quick " mentality
of some scam artists trying to sell courses and the like concerning these and other markets. ( Had a guy
call me Friday saying He was making 50 to 100 percent return on investments in Forex ). One other
thought is that we all read and sign the risk disclosure statement at the end of the application to open any
account whether that is futures, stocks, mutual funds, forex or any openly traded market. So anyone who
does knows the risk of loss before the first trade. I haven't had the time yet to read RIN 3038-ac61 but
would be interested in learning more about how these changes come about. So in closing I would like to
see the margin rates stay at no more than 100:1. Thank you for your time to read this and hope you have
a good day.
respectfully,
James M. McDonald
