Comment for Proposed Rule 75 FR 3281
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From:
James Bouchard
Organization(s):
Comment No:
2801
Date:
1/22/2010
Comment Text:
i0-001
COMMENT
CL-02801
From:
Sent:
To:
Subject:
James Bouchard
Friday, January 22, 2010 3:36 PM
secretary
Regulation of Retail Forex
Dear Sirs:
This is in response to your proposed rule changes to limit leverage in retail forex customer accounts to a
10-to-
1 limitation.
This will not help limit losses to retail traders as most small retail traders of my acquaintance use good
loss stops and risk only 1 or 2 percent of their accounts for all trades.
The rule change would make it impossible for the small retail traders to even exist at 10-to-1 ratios since
that would mean needing a much larger account to even get started in this business.
It is a hard business to learn but with present leverage rules it is possible to use mini-lots and some
brokers even use micro-lots so a retail trader can start with a small amount of money in the account. This
is a good way to learn and one does not risk losing a lot of money in a small account.
But if you change the leverage rule you will be making it impossible for small retail traders to succeed
in this business.
Please do NOT impose new rules.
Thank You
Jim Bouchard
Fredericksburg, VA
