Comment Text:
i0-001
COMMENT
CL-04997
From:
Sent:
To:
Subject:
R Henderson
Thursday, February 4, 2010 2:15 PM
secretary
FX Transactions and Leverage
Dear Secretary
Professional advice should be taken from experts in this field before enforcing such
laws. Over 80% of traders lose because of leverage. Leverage does not expose the
economic system to risk. In almost all cases trades are terminated because of stop
positions which are in place due to leverage. The more leverage; the greater the stop
positions and closer the stop is to the price action. In effect stops reduce volatility and
risk. With no leverage, or much reduced leverage (10:1) there will be wider stops and so
greater volatility and so greater risk to the economic system. Risk will actually increase.
This legislation is inverse to what it seeks to achieve.
R Henderson
A 20 yr FX trader
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