Comment Text:
i0-001
COMMENT
CL-00595
From:
Sent:
To:
Subject:
AlfaCorp,LLc
Tuesday, January 19, 2010 1:27 PM
secretary
New Forex Leverage Proposal is an outrage!!!
To whom it may concern,
I am a small business that relys solely on the forex market and its current leverage requirements. I have
been a professional trader for over 13 years and have come to know that leverage when used properly
is actually safer to new and experienced traders alike as it provides more participation and liquidity
which prevents excess volitility leading to less risk. YES LESS RISK, because a new trader can open
his/her account with less startup capitol(higher leverage allows this), therefore he/she has less overall
risk due to capitol limits. This has allowed me to tutor and train young traders with minimal out of
pocket cost to the trader.Conversly the new trader that uses max startup capitol (as will be the case with
your proposed requirement) will place this inexperienced trader at a huge disadvantage as he/she is very
unlikely to ever build upon this initial deposit and will be encouraged to take larger risk by holding
trades longer, not using stops etc, based on the illusion that he/she can afford this risk. In my experience
high leverage can be very beneficial and has been the main reason for the recent popularity and
successes associated with the forex market. The proposed requirement does not take into consideration
real life retail trader scenarios and will ultimately put retail traders and small businesses out of
business!!
I ask that your seriously reconsider this proposal and allow the retail trader community who you claim
to want to protect, have their input as well as the brokerage houses. We are liquidity providers in our
own right and are on the front line of currency markets around the world. I fear that if this proposal does
pass, it will not only increase unemployment but also force more brokers, retail traders and small
business to take their business overseas as many have already begun. This will be a travesty to all
market participants and the American people as a whole!!!
David Rosenthal
Best Regards
