Comment Text:
i0-001
COMMENT
CL-03514
From:
Sent:
To:
Subject:
Padma Sardana
Sunday, January 24, 2010 12:36 PM
secretary < secretary@ C FTC. g ov >
Regulation of Retail Forex-RIN3038-AC61
Dear Secretary
My opinion of proposed regulation to reduce the margin limit from 1:100 to 1:10 will harm the
investor more than helping because first of all for all the existing positions which are currently
being held under 1:100 will require fulfillment of significant amount of deposit to save those
position from being washed out with reduced margin limit - which anybody in my situation will not
be able to fulfill and eventually end up losing potential money beside all the consequences that we
are already dealing with current economic situation. Secondly, I think as a fair trade practice if not
over but atleast people should be given reasonable flexibility(which in my opinion 1:100 is
reasonable margin limit) to choose from what suits their needs. Thirdly, reduced margin limit
will open forex trading only for big and high risk taking investors who can afford and have potential
to buy minimum of 100,000 (1 lot) securities as a minimum trade instead of small investors like
me who can only take risk upto 10,000 (1 lot) securities at a time. My opinion is this will cause
more turbulance in the market with people betting on high stakes than now resulting in
another Wall Street fall of 2008.
I sincerely hope that in the best interest of our country and economy this regulation should not be
passed.
Should you have anymore questions for me please feel free to reach me.
Thanks
Regards,
Padma
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