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Comment for Proposed Rule 75 FR 3281

  • From: William B Deveer

    Comment No: 83
    Date: 1/15/2010

    Comment Text:

    William Deveer
    Friday, January 15, 2010 12:53 PM
    Opposition to 50:1 leverage from a 10 year Forex trader
    Dear Secretary of the CFTC,
    This e-mail is sent to oppose 10 to 1 leverage.
    I have been a forex trader for over 10 years. I am not
    rich with high resources. I usually trade with a few hundred dollars
    where most traders & the average citizen do not have a lot of money
    to trade and make a living at it. There is a big advantage to higher leverage
    that your organization is disregarding. This advantage is it provides a greater room
    to handle fluctuations in the market while maintaining a certain level of lots (in
    forex) where this level of forex can make a lot of money in the trending forex
    market. For example with a $ 500 account & 500:1 leverage, you can buy/sell
    0.26 lots that leaves 170 pips to handle market fluctuations and still make $ 577
    m a 200 pip move. in the Yen.
    Therefore, a higer leverage, when properly used, is a win-win situation for the
    average person who does not have a lot of money. Please consider this aspect
    of the proper use of leverage and allow for higher leverage. It is actually beneficial
    to the average trader. Please allow the trader, who is risking his won money
    to choose the leverage in a democratic soceity, instead of being forced to accept
    the ruling of the CFTC.
    William B. Deveer
    Forex Trader
    28623 Military Rd. S. # A15
    Federal Way, WA 98003