Comment Text:
i0-001
COMMENT
CL-01607
From:
Sent:
To:
Subject:
Don Page
Thursday, January 21, 2010 8:16
AM
secretary
Regulation of Retail Forex
Comments concerning: RIN 3038-AC61
I am opposed to the provisions of the above that would limit the leverage to 10:1 for forex trading.
This would have the opposite effect in that it would cause excessive risk taking. The profit models required to grow one's
account would require greater investment of capital and a resultant greater risk for forex participants. The problem with
those uneducated participants in forex is the over trading of one's account. Those who risk no more than 1% of account
balance per trade are never at risk of catastrophic margin calls.
As the saying goes, "A fool and his money are soon parted", and this is true for anything in life. To single out the adult
participants in forex off-exchange market is a gross violation of freedoms. To apply this logic to say automobiles, one would
argue that the potential of an automobile to travel at 100 mph is a danger to the public, therefore the govt should mandate that
all cars be mechanically limited not to exceed 75 mph. No one would stand for it. People make the choice to speed or not to
speed, and deal with the resultant consequences. Participants in the retail forex market make leverage choices, and deal with
the resultant consequences.
ALL investments involve risk.
Regards,
Don Page
