Comment Text:
i0-001
COMMENT
CL-08896
From:
Sent:
To:
Cc:
Subject:
E Free
Monday, March 22, 2010 4:43 PM
secretary
eddie
Regulation of Retail Forex
Dear Secretary of the CFTC,
Regarding RIN 3038-AC61, this e-mail is sent to oppose 10 to 1 leverage
or even 50:1 leverage from a 1 year Forex trader.
I have been a forex trader for over 1 year. I am not
rich with high resources. I usually trade with a few hundred dollars
where most traders & the average citizen do not have a lot of money
to trade and make a living at it. There is a big advantage to higher leverage
that your organization is disregarding. This advantage is it provides a greater room
to handle fluctuations in the market while maintaining a certain level of lots (in
forex) where this level of forex can make a lot of money in the trending forex
market. For example with a $ 500 account & 500:1 leverage, you can buy/sell
0.26 lots that leaves 170 pips to handle market fluctuations and still make $ 577
in a 200 pip move. in the Yen.
Therefore, a higer leverage, when properly used, is a win-win situation for the
average person who does not have a lot of money. Please consider this aspect
of the proper use of leverage and allow for higher leverage. It is actually beneficial
to the average trader. Please allow the trader, who is risking his won money
to choose the leverage in a democratic society, instead of being forced to accept
the ruling of the CFTC.
Sincerely,
Edwin Freeman
Forex Trader
