Comment for Proposed Rule 75 FR 3281
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From:
Amnon Gilboa
Organization(s):
Comment No:
2488
Date:
1/22/2010
Comment Text:
i0-001
COMMENT
CL-02488
From:
Sent:
To:
Subject:
Amnon Gilboa
Friday, January 22, 2010 7:44 AM
secretary
Regulation of Retail Forex
Greetings,
In light of your recent proposal to limit the maximum allowed leverage in U. S Forex retail trading, I would like to raise my
voice and object that severe reduction. While it is true that in my own trading style I rarely leverage any single position more
than 1:2 - 1:4 it nevertheless keeps me well within margin constraints. My trading is thoughtful and responsible and the fact
that my (U.S based) broker allows me to trade with a 1% margin level keeps me safe within the actual 1:1 - 1:10 (or even
1 : 12) overall leverage I may carry for a a while.
This move would make the retail Forex arena a game for the big guys only - and we know that the big guys aren't more
responsible or better in anyway.
Most probably, should this proposal gets to be approved, I will elect to close my U.S broker's account and switch to
European/UK based broker and I will do so for my own safety - as having a margin requirement of 1% actually gives me a
safety net. A 10% margin requirement would collapse that net.
All in all, having a 1:50 max leverage still sound reasonable enough, as I am aware of the fact that some 'noise' and cross
currency instability are indeed related to highly leveraged traders/trader bots.
Sincerely,
[]- Amnon Gilboa
