Comment Text:
i0-001
COMMENT
CL-04617
From:
Sent:
To:
Subject:
Toby Benedict
Saturday, January 30, 2010 8:00 PM
secretary
Re: Regulation of Retail Forex
Dear secretary,
In addition i believe that people would not devote the necessary amount of time researching economic
fundamentals, etc, if the leverage was reduced to 10 to 1; because they would have to gain upwards of
2000 pips to make the same return they can now with 200 pips, they would end up not researching the
market enough because of the extra amount of time it would take and therefore end up doing poor
quality trades. As well i don't believe that any traders are out to dictate or manipulate the market; how
can they when it is a 3 trillion dollars market. Everywhere else in the world people are able to trade the
forex currency market with leverage and i strongly believe that the already reduced leverage at 100 to 1
is optimum, fair, and plenty safe. In fact in order to lose your money you would literally have to do
hundreds of trades because the leveraged position protects most of your money and when it closes you
are left with a large amount of capital and more opportunities. In additon people can use stop losses at
all times and manage their risk by A. either changing their leverage, or even easier by just buying less
lots. It's every individual's own personal choice; please do not reduce the leverage to 10 to 1; that would
be a 97.5 percent reduction, and completely unneccessary. Toby Benedict
On Sun, Jan 24, 2010 at 7:24 AM, Toby Benedict wrote:
RIN 3038-AC61 Dear sir,
I have traded currency pairs in the forex market in the U.S. for over 3 years time. I believe that the
changes implemented last September reducing the leverage to 100 to 1 and 50 to 1 have benefited
many traders. However the new proposal to further reduce leverage to 10 to 1 would be unnecessary
and overly restrictive. I devote a large amount of time studying the technical and fundamental
analysis to try new trading strategies all the time and i find the current amount of leverage very good.
If it is drastically reduced to 10 to 1 it would severely affect my return potential; it would be
impossible to get a good return in a reasonable amount of time. Furthermore if this change was
implemented and the regulators prevented U.S. investors from being able to trade forex overseas i
would be severely dissapointed and frustrated. People know that foreign exchange trading is
potentially risky already; they are well educated and know to not use more than 10 percent of their
total capital invested on higher leveraged trades. The companies do a very well job of educating
investors on this. Therefore i would be very dissapointed to not have an opportunity to be able to
make a little money with the small amount of money i can save from my job; 10 to one leverage
would be way too low. Please keep the leverage at the current level; it is already safe enough. I
strongly believe this would very negatively affect the forex retail market in the United States. Thank
you for your time.
Sincerely, Toby Benedict
[email protected]
510 Broadway
#301 Seattle, WA 98122
