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How Have The New NFA Guidelines Affected Your Trading?

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  • Have the new NFA rules afftected your trading?
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  • Post #1
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  • First Post: May 26, 2009 11:14am May 26, 2009 11:14am
Have the new hedging rules affected your trading? If so, how?
I think only a very small percentage of trading stategies involve hedging.
Nevertheless you can still open 2 accounts and hedge across those.
Even at the same broker it's allowed.
Wouldn't hedging across two accounts with high leverage be rather risky?

My big concern isn't hedging, but rather the rules that brokers are liable for all trades they execute. My concern is that they may place onerous restrictions / costs on the trader in order to pay for the increased risk associated costs they will bear.
A storm in a teacup in my opinion. Very few traders use hedge strategy and of those who do use it an even smaller percentage make money. It's been blown out of proportions really.
Quoting PipStar
A storm in a teacup in my opinion. Very few traders use hedge strategy and of those who do use it an even smaller percentage make money. It's been blown out of proportions really.
The issue isn't hedging so much, but rather as the dangerous precedence that the NFA can start telling us how to trade. Personally, I think this is a call to arms. Better to start the fight on this issue rather than something we actually care about (eg, leverage).

And perhaps this issue is effecting a small minority.

But everyone of us belong to some small minority group in trading, because we do things in a certain way. How would you feel if they targeted your particular group?

90% of traders will just say what you say "oh, this rule only effects a small minority".

That's how they boil the frog.
Quoting blazespinnaker
The issue isn't hedging so much, but rather as the dangerous precedence that the NFA can start telling us how to trade. Personally, I think this is a call to arms. Better to start the fight on this issue rather than something we actually care about (eg, leverage).

And perhaps this issue is effecting a small minority.

But everyone of us belong to some small minority group in trading, because we do things in a certain way. How would you feel if they targeted your particular group?

90% of traders will just say what you say "oh, this rule only...
Well said
I hate this rule. Hate it hate it HATE IT. I hedge to protect trades already in profit and usually let the "hedge" order fall out at break even, or +5 or so pips. Generally both orders exit in profit though. If you don't see the advantage to that then i don't know what to tell you.
  • Post #8
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  • Last Post: Edited at 4:54pm May 26, 2009 3:24pm | Edited at 4:54pm
Quoting FXTradeX6
I hate this rule. Hate it hate it HATE IT. I hedge to protect trades already in profit and usually let the "hedge" order fall out at break even, or +5 or so pips. Generally both orders exit in profit though. If you don't see the advantage to that then i don't know what to tell you.
You know what I really hate about the lack of hedging, is all the dumb money not going into the coffers of the brokers so they can afford to tighten up the spreads.

That being said, there are rare situations when hedging IS profitable. Just because they are rare, though, is not reason enough to get rid of hedging.
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