Comment Text:
i0-001
COMMENT
CL-03341
From:
Sent:
To:
Subject:
[email protected]
Saturday, January 23, 2010 4:28 PM
secretary
"Regulation of Retail Forex"
ID # RIN
3038-AC61
Dear Mr. Secretary,
As an avid Forex trader, I wish to express my vehement opposition to your proposed leverage
limitations for Forex trading. By changing leveraging options from the current available 100:1 to the
proposed 10:1, you are effectively eliminating the small investor. Higher leverage allows trading with a
smaller account size, which effectively limits risk (I assume the purpose of the proposed changes). I
personally would rather risk/trade a smaller $1,000-2,000 account (which can be done with currently
available leverage rates), than risk/trade what would essentially have to be an account minimum of
$10,000. Rather than changing leverage, another suggestion would be to impose contract/lot size
limitations until certain account balances are reached or achieved. For example, up to an account
balance of $10,000, only a maximum number of lots could be open at any one time. At higher account
balances, more lots could be traded, in a stepwise fashion. This suggestion would not eliminate the
small investor, would limit risk by limiting trade size/exposure, and would allow for increased trade size
with larger account balances (and presumably increased risk tolerance or experience). Thank you for
your consideration.
John Kemp, MD
