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Comment for Proposed Rule 75 FR 3281

  • From: Padma Sardana
    Organization(s):

    Comment No: 3514
    Date: 1/24/2010

    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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