Comment Text:
i0-001
COMMENT
CL-02975
From:
Sent:
To:
Subject:
Digitalight
Friday, January 22, 2010 7:23 PM
secretary
Regulation of Retail Forex
Hello,
As a Forex trader I am against any plans to limit retail forex leverage to 10:1. I will have to move my accounts
back overseas to get the same full leverage and people who work in this industry in the United States will lose
their jobs.
This will also have an impact on the US dollar and will reduce US tax collection as many foreign governments
don't
report earnings. Last year I moved one $25K account from Gain Capital in London back to the US with FXDD
because
of a good lB. This year I opened a second account with FXDD and then your new limit of 100 to 1 leverage was
forced on me.
My earnings this year to date could have been 25% higher if the 200 to 1 was left alone. At 10 to 1 I will transfer
three accounts
worth over $45K back to overseas brokers to reclaim my 200 to 1 leverage and therefore reclaim better earnings.
Thus 10-1 will basically cost thousands of US Jobs and hundreds of millions in tax revenues. There is a lack
of intelligence running in the CFTC. Seriously! If the goal is to reduce the odds of new traders losing all their
money
then you should have a graduated leverage based on capital in an account. For example,
under $2,000 give traders 25:1 or up to 50:1 and for accounts over $5k or $10k give the entire 200:1 leverage.
It's only the traders with a few hundred dollars in accounts that you should hit by this arcane rule. Leave the
professional traders alone with the leverage and risk they need. Any good trader risks no more than 1 or 2% of
their
account in trades and if you're a scalper doing multiple trades at once THIS RULE WILL HURT their money
management
algorithms and thus cause the very thing you hope to prevent, LOSSES.
Another solution is to HARD CODE maximum losses of 100 pips. I personally limit my losses when wrong to
50 pips max thus trading more lots and when I'm right my trades go 25 to 100 pips. Cutting leverage
drastically will change how I trade, that is until I open foreign accounts again which EVERY experienced trader
will do. This rule is damaging and I'd like a response as to the reasons behind it. But I have a feeling you do not
care about a small trader such as me. If you do, then respond and tell me how your rules benefit me. When you
cut
my earnings potential, you also cut the US tax revenue amonut as well.
Patricia Sue Clark
1103 Seton Hall Lane
Pflugerville Texas 78660
512.670.2224
[email protected]
