Comment Text:
i0-001
COMMENT
CL-07398
From:
Sent:
To:
Cc:
Subject:
Ed Gerczak
Saturday, March 13, 2010 8:11 PM
secretary
Ed Gerczak
Regulation of Retail Forex
To Whom it may concern:
I am totally against the proposal RIN 3038-AC61 to limit the Forex Leverage to 10:1.
I am an active Forex Trader with over 4 years of experience.
If you change the leverage from 100:1 to 10:1 you will increase my exposure to risk tenfold. Instead of me risking
$300.00 per trade, I will have to place $3000.00 of my personal money toward every trade I make.
I do not have my trading account anywhere near that amount so I will lose the 4 years experience I have invested
and will probably have to quit trading. I am a single home owner with only one income so I will probably lose my
home.
My broker MB Trading Futures Inc. is excellent. From the start they have been responsible and only offered 100:1
leverage. If you pass this regulation you will be forcing my broker who only works off of commission to try to
compete with the rest of the world with only roughly 10% of their present income. This is not fair for my broker and
many other responsible US brokers. Many US jobs will be lost and many foreign jobs will be gained. We've
already given away enough US jobs.
Every entry level Forex trader knows about the risk involved and learns from their trades. At 10:1 leverage, the
entry level trader who enters a trade for $1500.00 and has a margin call at 50%, will lose about $750.00 that's
quite an expensive lesson.
I've done extensive trading on all three sessions. If you limit the leverage to 10:1, I believe you will upset the
balance between the US, Asian and European Sessions. During the US Session and especially when US news is
released, US
traders will only have 10% of the leveraged US dollars to compete with the rest of the world to keep US prices
from getting way out of sync. Without the ability to rebound, I believe all the Major US dollar pairs will be on a
steady decline. We need a strong US dollar, not a weak US dollar.
Thank you for considering my opinion against the proposed 10:1 maximum leverage. I believe it should not be
changed, but kept at 100:1 maximum just as it is.
I am Edward Gerczak
1206 Ridge Rd. ; Pylesville, MD 21132
Sincerely,
Edward Gerczak
