Comment Text:
i0-001
COMMENT
CL-00714
From:
Sent:
To:
Subject:
Market Minute
Tuesday, January 19, 2010 4:46 PM
secreta ry < secreta ry@ C FTC. g ov >
Concerned FOREX trader
To whom this may concern:
The new legislation for limiting risk by allowing leverage to only be 10:1 is absurd. Experienced
traders such as myself would not benefit from this and neither would the big institutions that help
the world of capitalism to remain stable. Any experience trader doesn't risk more than 2% on their
accounts and have strict money management rules that govern their own trading behavior. Every
experienced trader knows the only way to limit their risk is through proper position sizing (how
many lots to trade), amount being risked (1% or 2% of account equity) and knowing when to get
out with a set stop loss. (10 pips is my preference but everyone is different)
The only people if any this should apply to is new and inexperienced traders who open Mini and
Micro accounts with a few hundred dollars to get their feet wet per say. The change in leverage
across the board will have detrimental effects to the FOREX trading community not including a
whole slew of jobs lost in the US alone because most experienced traders and big institutions
would just open accounts overseas thus limiting the liquidity in the US banks.
In these grim economic times the last place that needs change at this pressing moment is the
FOREX industry.
Thank you,
Concerned Currency Trader
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