Comment Text:
i0-001
COMMENT
CL-04322
From:
Sent:
To:
Subject:
Peter Sagi
Thursday, January 28, 2010 6:01 AM
secretary
Proposed Regulation of Retail Forex
Mr. David Stawick, Secretary
Commodity Futures Trading Commission
Regarding R1N 3038-AC61
As a private FOREX trader who trades for my wife and myself exclusively, I see no reason for limiting
the margin requirement to a 10:1 limit versus the current 100:1 limit, this would be a severe limit on my
ability to trade this market.
Firstly, I fully understand the risks of trading and it is MY CHOICE to trade in a market that offers
extreme leverage, knowing fully well that the same leverage that allows me to, with good risk
management and reasonable skill, profit several percentage points in a trading day, can also wipe out my
trading account in a day in the event that I used poor judgement. Again, it is MY CHOICE and a fully
informed choice.
Secondly, but more importantly to the market as a whole ... the high degree of leverage, low
commissions, and narrow spread between bid and ask prices is what makes this market attractive to
active traders, which provides liquidity to the market. Increasing the margin requirement by a factor of
10 will destroy much of the popularity of this market which will reduce liquidity and increase spreads.
Thirdly, it is ultimately just an inconvenience in that a determined trader need only operate a foreign
corporate entity at arms length to circumvent.
Sincerely,
Peter A. Sagi
