Comment Text:
i0-001
COMMENT
CL-03242
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[email protected]
Saturday, January 23, 2010 11:59 AM
secretary
Public Submission for 2010-00456
Public Submission for 2010-00456.zip
Please refer to the attached file.Please Do Not Reply This Email.
Public Comments on Regulation of Off-Exchange Retail Foreign Exchange Transactions and
Intermediaries:
Title: Regulation of Off-Exchange Retail Foreign Exchange Transactions and Intermediaries
FR Document Number: 2010-00456
Legacy Document ID:
RIN: null
Publish Date: Wed Jan 20 00:00:00 EST 2010
Submitter Info:
first name Partha
last name Ghosh
address1 251 West Dekalb Pike, Apt A311
city King of Prussia
country United States
us state PA
zip 19406
company PSG Investments
Hello,
I have a small part-time Forex trading business in addition to a full time job. The new
regulation of lowering the margin requirement to 10:1 would severely affect my ability to
profitably trade the Foreign Exchange.
The real issue here is not margin, but risk. Many new traders, or for that matter, many
experienced traders to do not understand the need to limit risk. That is why many of them
lose their accounts; it is due to risk, not because of the high margin.
With 10:1 leverage, and the small movements (sometimes 1 to 2 cents a day, or 3 to 4 cents
a week), the Forex market would not deliver the potential profits to small investors like myself.
Please understand, I am not opposed to regulation. I'm a Democrat after all :-). However, I do
believe this regulation will really end small retail Forex trading in the U.S.
When the CFTC lowered margin requirements from 400 to 1 down to 100 to 1, I supported
that because there is no need to trade with that much margin. However, this next proposal
will truly hurt small traders and investors.
Please reconsider this proposal.
Regards,
Partha S. Ghosh
PSG Investments
