NFA New Rule Not allowing stop and limit orders | Page 2 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Buy Stop Limit and Sell Stop Limit Orders on MT4 6 replies

Auto SL/TP & buy limit, sell limit/buy stop, sell stop EA/indi 2 replies

Difference between buy limit, sell limit, buy stop, & sell stop? 4 replies

NFA - "No more Limit or Stop Loss orders" 531 replies

NFA Rule "No Stop/Limit Orders" Not for all US Brokers 8 replies

NFA New Rule Not allowing stop and limit orders

  • #21
  • Jul 1, 2009 11:59pm Jul 1, 2009 11:59pm
Quoting ramdas
New NFA rule may be.
You are not allowed to withdraw profit more than your initial investment.
This doesnt even make sense. Do u mean at one time? Usually this means you cant withdrawal more than your biggest deposit amount at any one time. Is this what u mean? If so, many Brokers already practice this form of bullsh-t. Doesnt affect my trading as no Forex Broker will ever have more than a grand to steal from me. Change the name from FOREX to FRUADEX and bend over. BTW, does anyone else feel the hatred toward MT5/NFA/AmericanForexBrokers?
FF = Forex Faggots
  • #22
  • Jul 2, 2009 12:27am Jul 2, 2009 12:27am
Quoting theFXGoods
I get the impression that there are too many traders out there making a living using EAs and not sitting in front of the computer all day - possibly making the professionals look bad.
Your impression is a little off. All those EAs are giving the professionals a bigger bonus.
  • #23
  • Jul 2, 2009 12:39am Jul 2, 2009 12:39am
the news is dishearterning

FXCM SUCKS!!!
Recently, they captured the FOREX market in the USA, and now they have started to introduce new rules through NFA in order to make their customer lose their money. I am deeply upset with them...
  • #24
  • Jul 2, 2009 12:56am Jul 2, 2009 12:56am
Quoting timbecks777
the news is dishearterning

FXCM SUCKS!!!
Recently, they captured the FOREX market in the USA, and now they have started to introduce new rules through NFA in order to make their customer lose their money. I am deeply upset with them...
It is interesting to see the biggest US broker encouraging people to move their funds overseas with this whole "Alternative route" Even though these OCOs are essentially the same things as a stop order (essentially) it does take some reading into it. It isn't like the title of the article is "NO MORE STOP ORDERS, BUT YOU STILL CAN DO THE SAME THING." I'm just trying to say that the way the article is worded it seems to be more biased to the casual reading going, oh well I'll just move my funds to the UK.
  • #25
  • Jul 2, 2009 3:10am Jul 2, 2009 3:10am
Quoting smjones
Rumor has it, they are Outlawing Santa Claus also, as he brings unrealistic false hopes.
Its not the rumor but its the true news i also received this E-Mail from fxcm this morning.

http://www.fxcm.com/images/email/template/fxcm_logo.gifhttp://www.fxcm.com/images/email/tem...ncytrading.gifhttp://www.fxcm.com/images/email/template/LiveChat.gifhttp://www.fxcm.com/images/email/template/ContactUs.gifhttp://www.fxcm.com/images/email/tem...ow-divider.gif
عربي | Español | русский | 日本語 | 中文 Dear Client:
A major new National Futures Association (NFA) rule goes into effect on August 1, 2009. This rule affects all U.S. regulated Forex Dealer Members. Forex traders will no longer have the ability to place stop-loss or limit orders. Nor will traders be able to modify or close trades from the “Open Positions” window. As these features will be removed, all stop-loss and limit orders held on FXCM LLC accounts at the close of trading on July 31, 2009, will be deleted.
FXCM has always encouraged active risk management through the use of stop-loss and limit orders. Stops and limits are two entry orders that are linked to an individual open position. If a stop or limit order is triggered then the other is canceled. FXCM has introduced a new feature called OCO (One Cancels the Other) entry orders, which will provide traders with the same functionality as stop and limit orders except they are not linked to any position. Watch This Video Presentation To See How To Manage Your Risk Using OCO Entry Orders
For additional information, please visit the “NFA FIFO (First in, First Out) Rules” forum on DailyFX. We will be holding live question and answer sessions within the DailyFX forum. Visit Now
The NFA, our industry’s self regulatory organization in the United States, has adopted Compliance Rule 2-43(b). Read Compliance Rule 2-43 (b). This rule requires orders be executed First In, First Out (FIFO). FIFO requires that when multiple positions are held in the same currency pair, the position which was first opened will be the first to be closed. Stop-loss and limit orders do not comply with FIFO.
The NFA’s stance is that FIFO provides more transparency to customers by offering a more accurate picture of the P/L than viewing the results of individual positions. This brings the forex market more in line with the practices of the futures and equities markets.
While FXCM acknowledges the NFA’s concern and obligation to protect clients, FXCM would like to extend an option to those who would like to continue using stop-loss and limit orders, and who understand the underlying implications. Traders can transfer their accounts to Forex Capital Markets Limited (FXCM UK) and continue to place stop-loss and limit orders and maintain the ability to modify and close orders from the “Open Positions” window.
If you wish to maintain your current platform functionality, you can trade through FXCM UK, which is regulated by the Financial Services Authority in the UK. Learn More
If you wish to transfer your trading account to FXCM UK, please complete the one page form. Account Transfer Form
DEADLINE TO COMPLETE TRANSFER FORM: JULY 8, 2009
Important Notice: If you completed the transfer form, your account will be operational prior to the implementation of the new NFA regulations. You will be notified via e-mail when your account is transferred.
Your account number and password will remain the same and your open positions will remain intact. Moving an account to FXCM UK involves some changes in deposit and withdrawal instructions, and changes in charges for transferring funds. However, FXCM UK clients have the option to send funds to a bank in the United States and fund via credit card. MYFXCM.com will also be available.
Deposits | Withdrawals | MYFXCM.com
If you have any questions about the new regulations, or their effect on your risk management, please don’t hesitate to contact us at 1-888-503-6739, or e-mail us at [email protected].
We look forward to serving you.
Best regards,
FXCM
Financial Square
32 Old Slip, 10th Floor
New York, NY 10005
1-888-50-FOREX (36739)
[email protected]
www.fxcm.com
  • #26
  • Jul 2, 2009 3:14am Jul 2, 2009 3:14am
it is completely ridiculous whatever they came up with to work there way around.
to get into a position whereby they've agreed that we will not allow traders to place a direct Stop Loss on there order or a limit is ludicrous - it is out of this world
  • #27
  • Jul 2, 2009 3:16am Jul 2, 2009 3:16am
Quoting 8fingers
This doesnt even make sense. Do u mean at one time? Usually this means you cant withdrawal more than your biggest deposit amount at any one time. Is this what u mean? If so, many Brokers already practice this form of bullsh-t. Doesnt affect my trading as no Forex Broker will ever have more than a grand to steal from me. Change the name from FOREX to FRUADEX and bend over. BTW, does anyone else feel the hatred toward MT5/NFA/AmericanForexBrokers?
NFA can do anything, what a shit rules they are imposing . FIFO and No StopLoss and Take profit orders.
they want us to get Sucked with removing our Protction tools against Crazy Market moves ????

Only way left is to get out of US Broker and go for UK broker or shift accout to UK broker if choice available.

How can i protect my account if sudden spike comes in EURCHF with 200pip...and if my pos is on wrong side ...how will i able to exit within few seconds ?

Can NFA control such crazy spikes by imposing some Rules ?
If not then why they are removing our protection tools..like SL

All Crazy happening.
  • #28
  • Jul 2, 2009 4:28am Jul 2, 2009 4:28am
Fxcm sucks
Im going to close my account with them.
Bye Bye FXCM
  • #29
  • Jul 2, 2009 4:45am Jul 2, 2009 4:45am
I think this is just the begining of a series of tricks to try to tame the volatility on currencies

This new rule will benefit professional traders and by the same token cut back on the easy money stop hunters usually feast. So far I never believed in the power of retail traders but based on this new rule I'm starting to think that we can really make a difference.
  • #30
  • Jul 2, 2009 4:50am Jul 2, 2009 4:50am
It seems to me that this rule is being misunderstood or misread. I trade with Oanda. I asked them today about it and this is what they said......


Short Description: FIFO rule question

Dear M******,Thank you for your interest in FXTrade.OANDA's FXTrade platform
currently operates using a First-In, First-Out (FIFO) procedure. We do not
anticipate any change to your ability in how you trade with OANDA. At present,
OANDA will not be removing our Stop Loss or Limit order function from the platform.
Should this ever change, then we will certainly inform you in a timely manner.Please
do not hesitate to contact us with any questions.
  • #31
  • Jul 2, 2009 4:59am Jul 2, 2009 4:59am
Quoting price
It seems to me that this rule is being misunderstood or misread. I trade with Oanda. I asked them today about it and this is what they said......


Short Description: FIFO rule question

Dear M******,Thank you for your interest in FXTrade.OANDA's FXTrade platform
currently operates using a First-In, First-Out (FIFO) procedure....
oanda is well known to suck on costumer service they will probably send you a e-mail with the new rules one day after the deadline
  • #32
  • Jul 2, 2009 5:25am Jul 2, 2009 5:25am
Quoting 8fingers
This doesnt even make sense. Do u mean at one time? Usually this means you cant withdrawal more than your biggest deposit amount at any one time. Is this what u mean? If so, many Brokers already practice this form of bullsh-t. Doesnt affect my trading as no Forex Broker will ever have more than a grand to steal from me. Change the name from FOREX to FRUADEX and bend over. BTW, does anyone else feel the hatred toward MT5/NFA/AmericanForexBrokers?
It was a joke.....maybe....
  • #33
  • Jul 2, 2009 5:29am Jul 2, 2009 5:29am
Someone turn the idiot magnet off, we're getting over-run!

OCO works in exactly the same way as having a limit and stop order in the market. You put the numbers in the little box and your order gets executed when the numbers match up with price. Even better, the other one gets cancelled at the same time. What's the problem?

FXCM could have done a better job of communicating this without causing the dolt stampede. I used to wonder about the 95% failure rate, but judging by some of the BS I've read on this forum recently, I'd be surprised if 50% can tie their own shoelaces.
  • #34
  • Jul 2, 2009 5:37am Jul 2, 2009 5:37am
Quoting spiderforex
Steve,

Does that mean, i have to watch my order all day live without stop loss and when the trade goes against me, i have to move it into OCO to close the order ????
OCO acts the same as a stop loss. With MB Trading they call it a TTO (forget what is stands for). You set it up as a separate trade to either buy or sell at a certain price. If you're long, set it to sell, if short, set to buy. When it hits the price it executes the order and pops you out of your position. It has the same effect as if you were sitting there and did it manually.

This is from MB Trading's website:

http://www.mbtrading.com/forexOrderTypes.aspx

Look for Threshold Trigger Orders (ok, found out what it means) TTO and read it or google OCO.

I hate for this to sound like a commercial for MB Trading, but people should check them out. Their platform looks intimidating, but they have training videos and don't pull any of the bucketshop nonsense as they are an ECN. You pay commission, but I have gotten 1 pip spread or choice (0 spread) many times. They have MT4 as a demo, are about to go live with it and also said they have a solution for the FIFO order.
  • #35
  • Jul 2, 2009 5:40am Jul 2, 2009 5:40am
This kind of stuff is what happens when you put people in charge of our government, who have no idea what the hell they are doing... only now were swinging to the other side with Obama and Timmy!
  • #36
  • Jul 2, 2009 5:58am Jul 2, 2009 5:58am
Hi all....

Its sounds like what used to happen before all the new Bells and whistles
trading platforms came out....
Some platforms would not let you take a buy and sell on the same pair.....one cancelled out the other when price hit......then hedging came in..

Sounds like you can have it all....just not connected to the One trade you have to enter it in as another trade.

If there not connected to any specific trade it could get messy if you have multiple trades open....with different targets..
  • #37
  • Jul 2, 2009 6:40am Jul 2, 2009 6:40am
I thought this was an interesting thread to read even though it primarily refers to the anti-hedging policy that was adopted recently.

http://www.learningmarkets.com/index...p-hedgers.html
  • #38
  • Jul 2, 2009 8:03am Jul 2, 2009 8:03am
Just my thoughts on what is happenning regarding restrictive trading policies by FTC.

Th United States Government is in final stages of preparation to Repudiation of the US Debt, Collapse of the US $ and introduction of
Martial Law / Fashist rule in order to restructure (already bankrupt) economy. Think of it as a Chapter 11 bankkrupcy protection...

The change of the FTC rules do not make any sense unless they are
meant to make you move your account and money overseas without
alarming of the rest of the population about what's going on. This is
how the US Government is telling to YOU ...GET THE F***K OUT OF
HERE WHILE YOU STILL CAN . Your money will be needed for the US
economy once the dust settles. For now protect them by taking
it somewhere else.....

The Martial Law i US is planned for September 2009 ....The same
UK. Moving your money to GB will not help much. Both US/UK
will face the same fate.

Good Luck
  • #39
  • Jul 2, 2009 10:14am Jul 2, 2009 10:14am
Please read to entire press release to understand why Stops/Limits are being removed.
http://www.dailyfx.com/story/press_r...546593628.html
Taken out of context, I can see why it would be alarming but please read the entire release sent to FXCM traders. 1) Stops/Limits are being removed because FIFO does not allow individual management of tickets if there are multiple tickets of the same currency pair. AND 2) OCO orders are being made available instead which will take the place of Stops/Limits.

Trades can still be managed but it has to be done with OCO orders and not with stops/limits on individual tickets through the open positions window.

Jason

Quoting forexisfx
NFA will not be allowing stop and limit orders on open positions either, as this conflicts with their FIFO - first-in, first-out - new policy. This goes into effect may 17th.

Go NFA, Go NFA.

? ? ? ?

Any thoughts ?
  • #40
  • Jul 2, 2009 10:46am Jul 2, 2009 10:46am
seems like FXCM is the first to alert us and even has an educational video on their web site to educate about the new rule. while eveyone else has their thumbs up their butts.... thanks fxcm !
0 traders viewing now