Comment Text:
i0-001
COMMENT
CL-00846
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Subject:
Joseph Anto Thekkanath
Tuesday, January 19, 2010 9:17 PM
secretary
About the Rule to limit Forex Leverage to 1:10
Hello,
As a Forex trader I am shocked 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 10-1will basically cost thousands of US Jobs and hundreds of millions in tax revenues. 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 newcomer traders with a few hundred dollar accounts you should hit by this ridiculous 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
senseless and I'd request to reconsider this regulation.
Joseph Anto Thekkanath
Retail Forex Trader
