Comment Text:
i0-001
COMMENT
CL-03854
From:
Sent:
To:
Subject:
Vladimir Goldin
Monday, January 25, 2010 5:23 PM
secretary
Regulation of Retail Forex
Dear Secretary,
The proposal for a 10:1 leverage on Forex trading is simply ludicrous and preposterous. I have been
trading Forex for 5 years now and have become successful at it. The current 100:1 leverage has allowed
me to trade with normal size positions (1-2 lots) but invest only small amounts of capital so that I don't
lose a lot during my learning phase, which every trader must go through. Losses are part of trading, and
no amount of tweaking of the leverage ratios will change that. The only thing you do affect by changing
the leverage from 100:1 to 10:1 is drive out guys like me, who do not have a lot of money but want to
learn how to trade. You will make the Forex market accessible mainly to institutions and large investors,
which will shrink the market and make it MUCH LESS LIQUID. The stunning growth of Forex trading
that has surpassed $3 Trillion in daily transactions and the phenomenal tightening of spreads that has
reached fractions of a pip for certain currency pairs has been the result of retail traders entering the
market. This regulation will simply make most retail traders move their accounts to the UK or other
countries that are more welcoming to us.
Losses are not just a part of trading, losses are part of life. You or anyone else CANNOT mitigate losses.
You never have and never will.
Do not make the mistake of passing this regulation.
IT WILL BE DISASTROUS FOR AMERICAN FOREX TRADING!
Sincerely,
Vladimir Goldin
