Comment Text:
i0-001
COMMENT
CL-04047
From:
Sent:
To:
Subject:
Jeff Montgomery Jr
Tuesday, January 26, 2010 10:35 AM
secretary
Forex Leverage limitation
Dear Mr. David Stawick,
My name is Jeff Montgomery Jr. I have been trading on the Forex market for over 3 years now. I was
recently informed of the CFTC's proposed regulation of limiting the Leverage to only 10:1. In my opinion that
would be a very poor judgment call on the part of the CFTC. I am assuming that the reason for the limitation is to
possibly try to help guard against major losses for inexperienced traders. Allow me to share my thoughts with
you on this matter. By limiting the leverage to 10:1, you would negatively affect all of us experienced traders
who trade for a living because we would now make significantly less profit, which not only takes away our
livelihood but will also decrease the commissions collected by the brokers that we use as well as the taxes that
we pay, because we would be making a lot less money. For those traders less experienced than myself, every
broker has a demo account for them to practice until they are ready to start using real money & be profitable. If
they choose to open a live account & trade inexperienced & unprepared, that is there choice & they understand
the risks involved. It is their responsibility to decide what to trade & what to leverage. The brokers I use allow
me to set my leverage. So if I choose I can decide to only risk
10:1
instead of
100:1.
I was disappointed when
they did away with 400:1& limited me at 200:1. If we are limited at 10:1 I will be very upset. It should always be
up to the individual trader how much they are willing to leverage & risk, not anyone else. The CTFC needs to stay
out of this & quit putting restrictions on trading. If someone comes in & starts trading willy nilly& looses money,
that is his fault & no one else's. Do not punish those of us who actually do our research & study & learn so that
we can be successful traders. Lowering the leverage rate will hurt more people than it will help anything. Thank
you for taking the time to read my thoughts & please consider carefully the implications of this decision.
Sincerely,
Cell: 480-262-0343
Email: j effmontgomery5 @gmail.com
