Comment Text:
i0-001
COMMENT
CL-00768
From:
Sent:
To:
Subject:
Carl Schmidt
Tuesday, January 19, 2010 5:55 PM
secretary < secretary@ C FTC. g ov >
Fo rex Leve rag e
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Hello,
Asa ForextraderIam against at plans to limit retailforex leverage to 10: 1. People will just open
accou nts 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 theCFTC ? Seriously! 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 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
leverage
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
