Comment Text:
i0-001
COMMENT
CL-04385
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Sent:
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Subject:
David Kushner
Thursday, January 28, 2010 4:58 PM
secretary
leverage rule
Hello,
As a Forex trader I am aghast at plans to limit retail forex leverage to 10:1. People will just open
accounts overseas
and get the 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.
Thus 10-1 will basically cost thousands of US Jobs and hundreds of millions in tax revenues. 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
account.
Under $2,000 give traders 25:1 or up to 50:1 and for accounts over $5k or $10k give the entire 100:1
leverage.
Any good trader risks no more than 2% of their account 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 50 pips. I personally limit my losses when
wrong to
10-15 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 a foreign account which EVERY experienced
traderwill do.
Forex Trader
david
i0-001
COMMENT
CL-04385
