Comment Text:
i0-001
COMMENT
CL-04806
From:
Sent:
To:
Subject:
Rob Hanks
Tuesday, February 2, 2010 11:00 PM
secretary
Regulation of Retail Forex
Hello,
I wish to voice my strong opposition to reduce leverage offered to retail forex traders from 100:1 to 10:1 as
proposed in RIN 3038-AC61. I currently make my living trading forex. I trade at 100:1 leverage and manage my
risk according to my available risk capital. I fully and completely understand the risk disclosures provided by my
brokerage and never take on positions that could mortally wound my account. Reducing leverage to 10:1 will
force me to open an account with an overseas brokerage offering higher leverage.
The CFTC is a much needed entity and I do agree with most of the rules set forth but changing the leverage as
proposed I feel will do far more harm than good. If this rule is enacted it will cap the potential of many traders and
drive business away from U.S. based brokerages thus endangering traders because they will seek out
unregulated brokers abroad.
Trading forex can be dangerous if proper risk management is not employed but that should be the job of the
trader not the government. Changing leverage to 10:1 will not protect the trader, it will eliminate the trader. A
possible solution might be more education on risk management. It doesn't matter if a trader is leveraged
at 10,000:1 or 1:1. If they are not of the correct risk management mindset they will still empty their account no
matter what leverage is employed. Protect the trader through fraud prevention not leverage reduction. Thank you
for your time.
Rob Hanks
219 7th Ave NE
Minot, ND 58703
