Comment Text:
i0-001
COMMENT
CL-05342
From:
Sent:
To:
Subject:
Sheila
& Steve
Friday, February 12, 2010 10:19 AM
secretary
Regulation of Retail Forex
To whom it may concern,
I have been studying and trading the Forex Market for almost 5 years
now. It is my belief as well as others I have talked to that the issue
of risk you are trying to address for the uneducated trader is not about
leverage. By reducing leverage you are increasing the amount of capital
that is required to trade what can be currently traded today for less.
An example would be 1:10 vs. 1:100. A trade that would cost a trader
today $100 will be $1000 with new regulations. A more practical
approach would be to control margin requirements (otherwise known as
money management). If you allow a trader to risk only 3 to 5 % of their
account at any one time you have reduced risk. The regulation I am
speaking of is in regard to RIN 3038-AC61. I will be forwarding this on
to my local congressmen should further action be required. Thank you
for taking the time to read this as I hope this will stimulate a more
common sense approach to risk.
Sincerely,
Steve Clapper
