Comment for Proposed Rule 75 FR 3281
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From:
James Eckart
Organization(s):
Comment No:
471
Date:
1/19/2010
Comment Text:
i0-001
COMMENT
CL-00471
From:
Sent:
To:
Subject:
James Eckart
Tuesday, January 19, 2010 10:49 AM
secretary
Regulation of Retail Forex
Re:
RIN 3038-AC61
These are my comments on the proposed regulatory changes wherein the maximum leverage allowed
for retail Forex traders would be 10:1 as opposed to the 100:1 leverage allowed under current
regulations.
I believe that all traders should have the right to choose the amount of leverage that is appropriate for
his/her risk tolerance. Further, by requiring a significantly lower leverage by regulation, it forces retail
traders to either have significantly more assets in his/her trading account and/or be forced to trade much
smaller lot sizes, or both. Overall, this is a considerable disincentive to potential retail forex traders.
When I began trading spot forex two years ago, I was limited to 100:1 leverage and I was very
comfortable with the risk when trading one or two lots of 50,000 lot size. In anticipation of forthcoming
regulation changes, I am presently being limited to 25:1 leverage for all cross pairs which is limiting my
ability to trade my desired lot sizes. If the proposed leverage regulation limits trades to 10:1 (10%
margin requirement) leverage, I will be forced to stop trading forex because my risk reward ratio
becomes unfavorable and my account size won't permit me to trade enough to make it a worthwhile
venture.
James Eckart
Glen Allen, Virginia
