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Comment for Proposed Rule 75 FR 3281

  • From: Frank Byers
    Organization(s):

    Comment No: 5435
    Date: 2/17/2010

    Comment Text:

    i0-001
    COMMENT
    CL-05435
    From:
    Sent:
    To:
    Subject:
    Frank Byers
    Wednesday, February 17, 2010 10:44 PM
    secretary
    Frank Byers
    Hello,
    As a Forex trader I am aghast at plans to limit retail forex leverage to 10:1. People will just open
    accounts overseas
    and get the full leverage and people who work in this industry in the United States will lose their jobs.
    This
    will also have an impact on the US dollar and will reduce US tax collection as many foreign
    governments don't
    report earnings.
    Thus 10-1 will basically cost thousands of US Jobs and hundreds of millions in tax revenues. Is there
    any sign
    of intelligence running the CFTC or are you all just a bunch of idiots? Seriously! If the goal is to
    reduce the odds
    of new traders losing all their money then you should have a graduated leverage based on capital in
    account.
    Under $2,000 give traders 25:1 or up to 50:1 and for accounts over $5k or $10k give the entire 100:1
    leverage.
    It's only the dipshit traders with a few hundred dollar accounts you should hit by this stupid rule. Leave
    the
    professional traders alone with the leverage they need. Any good trader risks no more than 2% of their
    account and if you're a scalper doing multiple trades at once THIS RULE WILL HURT their money
    management
    algorithms and thus cause the very thing you hope to prevent, LOSSES.i0-001
    COMMENT
    CL-05435
    Another solution is to HARD CODE maximum losses of 50 pips. I personally limit my losses when
    wrong to
    10-15 pips max thus trading more lots and when I'm right my trades go 25 to 100 pips. Cutting leverage
    drastically will change how I trade, that is until I open a foreign account which EVERY experienced
    trader
    will do. This rule is idiotic and I'd like a response as to the reasons behind it?
    Retail Forex Trader