Comment Text:
i0-001
COIMMENT
CL-06596
From:
Sent:
To:
Subject:
bwk9087
Monday, March 8, 2010 6:55 PM
secretary
Regulation of Retail Forex
This is in regards to the new proposed rule of lowering the leverage of retail forex accounts to 10-1. I
am not in favor of this, I have been trading forex now for 4+ years, and have finally become successful
at it. It has been a long process, longer than my attempt at trading stocks, but I stuck with it and I can
only wonder where it may lead me. By lowering the leverage so drastically, i do not think I will be able
to make anywhere near the money I am now, since my accounts are not that large. In the example
below, I would need $14000 to trade 1 standard lot of the eur/usd, as compared to $1400 1 need now.
This is an absurd change. No one starting out will be in a position to make any money at retail forex,
unless they stuck with it for many, many, many years, unless they were to borrow huge sums of money,
and then, if they lost while learning, it would be even more of a horrible loss. I should be allowed to
evaluate my own level of risk, and trade according to that.
Currency Pair Price
Transaction
Current Margin
Proposed Margin
Quote
Size
Requirement at 100:1 Requirement at 10:1
Leverage
Leverage
EUR/USD
1.4285
1 standard lot =
$1,428.50
$14,285.00
100,000
GBP/USD
1.6370
1
standard lot
=
$1,637.00
$16,370.00
100,000
Thank you,
Brian Kitchen
