Comment Text:
i0-001
COMMENT
CL-07484
From:
Sent:
To:
Cc:
Subject:
[email protected]
Sunday, March 14, 2010 2:08 PM
secretary
cftcfeedback@fxdd, com
Regulation of Retail Forex - RIN 3038-AC61.
Dear CFTC,
In review of the proposal to change the leverage requirements to 10:1 in the Forex market
(RIN 3038-AC61), I have the following response:
Leverage has never been the deciding factor to make trading the forex market more or less
challenging for the retail trader, investor, speculator, etc.
There are other markets (for example) the Futures market where several instruments have higher
leverage, such as 20:1 than the proposed 10:1. Regardless, the statistics for how many people are
profitable in the futures market in comparison to the forex market are virtually the same so leverage
logically cannot be the issue.
By changing the leverage, you are not empowering people to make different decisions about risk-
management.
What does change things for speculators is education. By educating people how to use leverage and
avoid over-exposure to any one instrument, you empower them to make more intelligent decisions.
It has been said that leverage isa double-edge sword. The logic of any double-edge sword is
learning how to use it properly, not in changing the edge or the blade.
Logically, if you change the leverage for the Forex market, then you should change it for all markets
regulated by the CFTC to a maximum of 10:1 as you are claiming this is the maximum leverage
people can trade without over-exposing themselves. If you are claiming this is only applicable to the
Forex market, then you should provide data to support such a claim.
It should also be said if the CFTC is proposing to change the leverage requirements, it should clearly
state on its site the primary reasons and arguments for such a change. If there are any data or
statistics to support those claims, then they should be clearly noted as part of the theoretical reasons
for proposing the change. This will allow speculators to makea proper decision and develop possible
counter-arguments so the situation can be clearly investigated by both parties involved.
Thus, I do not support in any way whatsoever the proposed regulations in changing the leverage to
10:1.
Kind Regards,
Chris Capre
Founder
Second Skies LLC
http ://2 nd SkiesForex.com
Fund Manager
White Knight Investments
http ://www.whiteknig htfxi.com
