Comment Text:
i0-001
COMMENT
CL-07382
From:
Sent:
To:
(~c:
Subject:
Stephen Watkins
Saturday, March 13, 2010 6:11 PM
secretary
[email protected]
'Regulation of Retail Forex'
Re:
RIN 3038-AC61. Current proposed margin reduction puts the retail trader at a disadvantage. Under
current conditions with most brokers, a trader, no matter what the margin won't lose more than his
account balance.
Individuals should have
the freedom of choice.
The business of the CFTC is to
ensure that the retail trader is trading in a fair and equitable environment. Rather than fix a lower
margin rate - ensure that all brokers offer the retail trader the flexibility to fix their own margin rate up
to the current maximum of 100:1 and ensure, if you're truly concerned about the potential loss to a
trader, that a trader's maximum allowable stop loss on any trade be fixed at a % of their capital
account. Percentage to be at
traders discretion
but capped at say a maximum of 5%. This form of
methodology continues to give a
trader the liberty to make their own choices
while protecting them
from the ravages of the market as well as protecting the truly stupid or inexperienced trader who does
not know enough to utilize a stop loss.
