Comment Text:
i0-001
COIMMENT
CL-05066
From:
Sent:
To:
Subject:
khaled hashem
Friday,
February 5, 2010 4:32 PM
secretary
Regulation of Retail Forex
Dear Sirs,
I am customer of FXCM [] LLC, account# 2088048217.
About the proposal of limiting the leverage included in 'Proposed Regulation 5.9 [] Security Deposits for Retail Forex
Transactions', I totally disagree.
The risk warning of 'Leverage is a double-edged sword. The high degree of leverage can work against you as well as for you',
I read it as follow 'Leverage is a double-edged sword. The high degree of leverage can work for you as well as against you'. I
mean that I see that high leverage is a neutral factor which is reflected in the sentence of 'Leverage is a double-edged sword',
and gains are preceding losses.
On the other hand, the high leverage provides a unique opportunity of realizing gains which are not provided by any other
market.
About the risks of high leverage, it is the concern of the trader only. He/She must be aware of what he/she about. He/She
must be well prepared, well trained before starting trading, which is his/her responsibility.
With all my respects to all regulatory agencies as CFTC, NFA and FINRA, their duties are to organize and to watch the
markets to be sure that laws are applicable & protect the markets parties from illegal actions like fraud or something.
In conclusion, I see the best to be done is to:
1- Keep the current leverage levels as they are.
2- Limit the losses to the extent of the funds of traders accounts not more.
3- Enforce clear and strong risk warnings, especially on the forex dealers sites and their advertisements on the net or any
other media.
4- Watch and supervise the market very carefully to prohibit any illegal action.
Best regards,
Khaled Hashem
