Comment Text:
i0-001
COMMENT
CL-07360
From:
Sent:
To:
Subject:
[email protected]
Saturday, March 13, 2010 3:15 PM
secretary
Comments on 1:10 leverage reduction on Spot FX
My name is Ireneusz Olszewski. I am a trader with 5 years experience in retail spot Forex and much more than
that trading stocks. I have heard that CFTC plan to put limitation on maximum leverage on retail FX platforms to
1:10. My question is why? Let me give you some facts: Go to AMP futures broker and on their site you find out
that to open one futures contract 6E which is equivalent of EUR/USD cross on spot FX (another words it is the
same price movement like EUR/USD) you need only 500 US dollars. I repeat : 500 $ is the margin requirements
for day trading one futures contract with AMP Futures broker. It means that one can open 172 087,50 $ (as for
March 12th 2010 ) position with only 5005. This is leverage of 344 to 1. The same margin is required by Velocity
Futures broker. 9005 is required by Global Futures broker. So if you want to cut leverage to 1:10 do it with futures
brokers as well as with retail spot brokers. If you limit only retail spot brokers it is clear even to me living in distant
Eastern European country that you do it in CME very interest.
Thank you
Ireneusz Olszewski
Address: Ksiecia Janusza 17/6, 01-452 Warszawa, Poland
e mail: [email protected]
