Comment Text:
i0-001
COMMENT
CL-05834
From:
Sent:
To:
Subject:
Paul Isak
Wednesday, March
3, 2010 10:12 PM
secretary
Regulation of Retail Forex
I do not agree that changing the leverage from 100:1 to 10:1 will do anything to stop volatility in the currency market. The
problem is not the retail traders - the problem is the hedge funds and as you know by now they are being investigated for
manipulating the euro dollar pair recently.
Another thing you might not know is that traders move the market very little and when most retailers are positioned in a
currency pair in the same direction the currency pair tends to go the opposite direction as hedge funds, etc cause short
squeezes that result in massive loses for retailers as they exit.
Please look into hedge fund trading first to see if that is the issue before taking away another means of making some money
in the currency markets.
Regards,
Paul
