February 8, 2009
Hello:
With more than two years of experience in the Forex (Foreign Exchange currency trading) market, I finally found a way to save and grow my account. It’s through hedging. Anyone with experience trading the volatile and fast-paced Forex market will attest to the unexplained currency pair spikes that occur, taking out Stop Losses. Not a news event, not a specific time of day, not a major financial exchange, not options blocks, … nothing that is apparent caused the spikes. Which leaves us with the brokers, large banks, and large hedge funds. Many brokers experience this “completely random” problem. And some brokers more often than others.
Hedging gives Forex traders a critical tool to protect themselves from the unexplained "price spikes" that take out many, many traders using Stop Losses. Without hedging, many brokers will "make a killing" in the market while causing serious financial harm to independent traders such as myself, and to our families.
Please do not ban hedging in the Forex. To do so would only help brokers make money for the few at the expense of the many. To help and protect Forex traders and their families, continue to allow hedging.
Please contact me with any questions.
Thank you,
Mike Andrews
Cc’d: Senator Patty Murray, Senator Maria Cantwell, Congressman Jay Inslee; 'edasso@nfa.futures.org'; 'lbrinati@nfa.futures.org'