Comment Text:
i0-001
COMMENT
CL-00762
From:
Sent:
To:
Subject:
Joseph Wojtowicz
Tuesday, January 19, 2010 5:39 PM
secretary
Proposed New FOREX Leverage Rule
As a Forex trader I am aghast at plans to limit retail forex leverage to 10:1. People will just open
accounts overseas
and get the full leverage and people who work in this industry in the United States will lose their jobs.
This
will also have an impact on the US dollar and will reduce US tax collection as many foreign
governments don't
report earnings.
Thus 10-1 will basically cost thousands of US Jobs and hundreds of millions in tax revenues. Is there
any sign
of intelligence running the CFTC? If the goal is to reduce the odds of new traders losing all their
money then you should have a
graduated leverage based on capital in account.
Under $2,000 give traders 25:1 or up to 50:1 and for accounts over $5k or $10k give the entire 100:1
leverage.
It's only the inexperienced traders with a few hundred dollar accounts you should hit by this stupid rule.
Leave the
professional traders alone with the leverage they need. Any good trader risks no more than 2% of their
account and if you're a scalper doing multiple trades at once THIS RULE WILL HURT their money
management
algorithms and thus cause the very thing you hope to prevent, LOSSES.
Another solution is to HARD CODE maximum losses of 50 pips. I personally limit my losses when
wrong to
10-15 pips max thus trading more lots and when I'm right my trades go 25 to 100 pips. Cutting leveragei0-001
COMMENT
CL-00762
drastically will change how I trade, that is until I open a foreign account which EVERY experienced
trader
will do. This rule is idiotic and I'd like a response as to the reasons behind it?
Retail Forex Trader
