Comment Text:
i0-001
COMMENT
CL-04206
From:
Sent:
To:
Subject:
vinith_rl@yahoo, com
Wednesday, January 27, 2010 1:23 AM
secretary
Public Comment Form
Below is the result of your feedback form. It was submitted by
([email protected]) on Wednesday, January 27, 2010 at 01:22:58
commenter_subject: Regulation of Retail Forex
commenter_frdate: January 13 2010
commenter_frpage: pr5772-10.html
commenter comments: Dear Sir,
I have an account with an US Broker, and
preferably, it has been going well. Although I am
from a different country, I trust brokers in USA
and UK are better regulated than any other European
ones.
I recently came to know about your 1:10 leverage
and margin requirements.
http://www, cftc. gov/newsroom/generalpressreleases/2
010/pr5772-10. html
Although your plans for better regulation and
scam/fraud prevention are spot on, the leverage and
margin rule is not feasible for traders.
For people who trade mini lots, it becomes
extremely difficult to trade with a lower margin.
And it isn't safe either. Trading a normal 1:100
lot can give 50 pips profit worth.
However, when the leverage is lowered, the same 50
pips against your position will seem safe. In
effect, we won't be making profits, but losing them
consistently, expecting price to turn.
Hence at 1:10 leverage for a $1000, you lose $500,
plus margin and rollover, when you hold the
position for 500 pips, which a normal trader will
be bound to do.i0-001
COMMENT
CL-04206
Hence, I would kindly request you to reconsider
your plans for a leverage change, and keep the
leverage at 1:100.
Thank you,
Vinith
commenter name: Vinith R
commenter withhold address on: ON
commenter addressl: 14/2086, Punnen Road
commenter_address2: Palayam
commenter_city: Trivandmm
commenter state: Kerala
commenter_zip: 695034
commenter~ohone: 00919495828783
