Comment Text:
i0-001
COMMENT
CL-03110
From:
Sent:
To:
Subject:
Robert Steele
Saturday, January 23, 2010 1:48 AM
secretary
Regulation of Retail Forex
RIN 3038-AC61
The extreme volatility of the foreign currency markets exposes retail forex customers to substantial risk. Forex
dealers currently extend leverage to their customers at ratios of between 25:1 to 400:1 or higher, which allows
customers to control contracts worth significantly more than their cash investment. Given these high leverage
ratios, even minor fluctuations in currency rates can exponentially increase a customer's losses and gains. Even a
small move against a customer's position can result in a significant loss. Under current practices, customer
positions are usually closed out once the losses in an account exceed the initial investment. However, if, for any
reason, the positions are not closed out at a zero balance, the customer could be liable for additional losses.
The above was taken directly from the propsoed CFTC Changes. You state "positions are usually closed out once
the losses in an account exceed the initial investment". I do not believe any one that was involved with this
proposal has spoken with any USA based broker. The accounts are always closed when the balance is zero
dollars. They also use a thing called a "Stop Out". Has any one researched this in your deparment?
Before you send alot more Americans out of work read the following please>
>>>http://www~f~rexpeacearmy~com/f~rex-f~rum/f~rex-artic~es/8342-if-cftc-d~es-say-g~~dbye-retail-f~rex-usa~htm~
Thank you,
Robert G. Steele
647 W Wolfcreek Rd
Blairsville, GA 30512
