Comment Text:
i0-001
COMMENT
CL-03758
From:
Sent:
To:
Subject:
lucinda davis
Monday, January 25, 2010 11:10 AM
secretary
Proposed 10:1 leverage
Dear Sir/Madam:
I am a forex trader and have enjoyed good relationships with a couple forex brokers here in the United
States. I have become aware of the CFTC proposal of limiting the amount of leverage offered by NFA-
registered brokers to 10:1.
I am very sorry to hear of this proposal and the possible consequences should it pass. This move would
absolutely kill foreign exchange trading in the US as we know it today and would force us to move our
accounts to brokers in other countries. I strongly feel that the government should allow forex brokers to
offer their clients whatever leverage they are able to. People like me enjoy trading small accounts and
should be allowed to do so. A person should not have to had a $100,000 account in order to trade in
forex market.
With the act of many traders moving their accounts offshore, many US brokers would have to lay off
workers and/or close. In these times when jobs are needing to be created, is that really the action that we
want to happen? Also, in these slow economic times, many people, such as I, are using their forex
trading to supplement a lower income or rebuild retirement that has gone by the wayside over the last
few years. The new proposal could totally eliminate that if a person wants to retain US brokers as I do.
The NFA has many legitimate and protective rules that we appreciate and we would lose that protection
by going offshore.
I am not sure of the rationale of the proposal of 10:1. Is it to protect people from losing in the forex
maket perhaps? If that is the case, I am of the opinion that trading requires a certain discipline and the
use of money management skills. These must be learned and adhered to on a personal and person to
person basis depending on their tolerance and goals. I certainly hope and pray that the government does
not attempt to legislate the irresponsibility of some at the expense of those of us who follow our money
management rules. At any rate, I can see how the new proposal could actually increase losses and
people with small accounts get margin calls more frequently.
Again, as a active forex trader, and since the leverage has already been lowered from 200:1 to 100:1, I
hope and pray that it be maintained at the current level of 100:1.
Very sincerely,
Lucinda Davis
864 809 0816 864 809 0816
