Forex FIFO Rule
FIFO Forex
Effects of the Forex FIFO no hedging rule.
Re: Limit orders & stops, FIFO and what we need to do regarding the new no hedging rule the CFTC approved on recommendations from the NFA
greg: are limit orders / stops being outlawed?
Brokers are handling this in different ways. First let’s discuss the new hedging rule. Simply put any US broker no longer is able to offer hedging. Oanda never allowed hedging however has always offered sub-accounts which is an effective way to trade any pair both ways at the same time. FXCM is transferring customer accounts to their UK offices if you desire to be able to hedge.
amir: uk doesnt have to comply with nfa. So yeah, that’s correct uk rules are different and nfa regs dont apply
greg: Seems crazy why the NFA are doing this
ajay: I have FXCM only. They have been very good to me. Last month when US regulators stopped hedging, lot of people switched over to UK FXCM. I am sure Oanda will have to follow same reglations
jordan: Oanda dwarfs other brokers in capitalization
jordan: valued at $1.2 billion – Silicon Alley Insider, The World’s Most Valuable Digital Startups. #10, you know just behind companies like Facebook, Wikipedia, Craigslist, Mozilla Corp & LinkedIn http://www.businessinsider.com/sai25
jordan: sure they have done their homework (there is no hedging w/ Oanda, they offer sub-accounts however which we have always used (4 & 8 hour seperate accounts)
sledge: I moved my account to UK 1.5 months ago, problem solved for now, Also with the MT5 changes the order handling will be a bit different from what I have read
ajay: Sledge I was tempeted to move my account too. Is you money safe? and how fast you get your money back.
jordan: sure, UK banks are real safe – http://www.telegraph.co.uk/finance/financetopics/financialcrisis/5639474/British-banks-highly-vulnerable-to-future-shocks-Bank-of-England-warns.html
sledge: yeah most of the larger brokers have UK branches, ask them and they will transfer your account
greg: really great article. Joy. I already had money in an Iceland bank which went bust, that was fun
sledge: yeah most of the larger brokers have UK branches, ask them and they will transfer your account
FIFO (First In First Out) Rule
Some brokers are currently only applying FIFO to hedging. Talk to your broker asap to find out exactly how they are going to handle it.
OANDA: No. New rules should not affect the FXTrade platform, as we are already in compliance with hedging restrictions and FIFO rules.
Regarding the FIFO ruling and it’s application by various brokers:
2. There is no consensus on whether it is just meant for hedges or for all positions (such as would be used in a grid strategy). Some brokers say it is for all and others just for hedges.
Do the new FIFO rules effect our trading?
jordan: it depends; those not using Oanda and using a US broker would no longer be able to trade the ZLC along with the Drop In trade as if they were long a pair on a ZLC trade and then took a Drop In trade on a pullback when it came time to exit the Drop In trade into profit the ZLC trade (which was placed first) would be exited.
The Drop In will be fine once the new update is released (which is taking profit earlier and spliting from 2 to 3 orders) will be able to be traded by anyone using any broker anywhere in the world.
vets: Hello Jordan, Hello everyone Jordan, looking forward to the new 3 order system that let’s us take profit sooner. TP Rocks!
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