Comment Text:
i0-001
COMMENT
CL-07020
From:
Sent:
To:
Subject:
[email protected]
Friday, March 12, 2010 9:07 PM
secretary
Against proposed leverage and margin changes in Forex accounts!!!!
Hello:
I am against any leverage or margin restrictions for small Forex traders. A small trader can adjust their own
leverage and risk without the need of the CFTC setting regulations. This proposal is not something that should
be promoted. Increasing the minimum margin requirement is not a good idea because many Forex brokers may
not conduct market orders in an honest manner which can cause a trader to lose their whole investment.
Brokers are not honest. It is much less risk to start with a smaller sum of money as risk then leverage it properly
versus starting with a larger min. margin. The $10,000 min margin requirement will eliminate many small
investors from the Forex market which should not be the domain of only the wealthy. Most wealthy or
investors with the dollars will not risk money in the Forex market because of the risk even at a lower leverage.
Changing the leverage and margin requirements will lower the amount of trading in the Forex market at least in
the US initially.
Charles Daeda
Ph (678) 571-1638
Maximum Leverage
Maximum Leverage
under
Current
Regulations
under
Proposed
Regulations
USD/JPY
USD/JPY
1 lot (100,000)
1 lot (100,000)
100:1 leverage (one percent)
10:1 leverage (10
percent)
Margin requirement: $1,000
Margin requirement:
$10,000
