Have you guys heard about this? I received this from a friend of mine....
I apologise if this is a repost..
There's some rule changes that will affect anyone trading
Forex with a USA regulated Broker as from the end of
July that you should know about.
Basically you cannot use Stoploss or Limit orders after that
so you need to see how you can still manage the risk on trades.
There's a good video that explains how
https://admin.acrobat.com/_a205571165/p91063619/
Also the leverage will be reduced to a maximum of 100:1
although...
Guys, it's all good!
...It does NOT mean you can't have stop / limit orders etc. It just specifies that they can't take a certain form that's evident in some platforms.
The rule just states that a broker will not be able to have a "close" based option tied exclusively to an individual position (or order ticket). i.e. "Close this exact ticketed position when it hits my Stop Loss or Take Profit level."
Why they are doing this?....
....If you had created a second position (let's say you doubled your exposure when you got confirming PA) and wanted to close it before the first half was closed that would totally conflict with the new FIFO ( First-In First-Out ) regulation from a few months ago.
This all doesn't stop your broker from creating "associated" orders and calling them say...
"Ticket #1202:- 'Stop Loss' for Order ticket #1200 - Create opposing entry order at 1.2343 to Zero my exposure (or halve it or whatever) "
"Ticket #1203:- 'Take Profit' for Order ticket #1200 - Create opposing entry order at 1.2570 to Zero my exposure "
...if that makes sense?
Most of the good broker platforms already do things the right way. You just didn't notice because it's managed in the background and shown to you in a simple way to understand. A broker can still show a line on the screen showing your order, with it's entry price, stop loss level, TP level and so on. Does it make any difference that in the background those stop loss and TPs are separate tickets that adjust your exposure? No .
It's like everyone whining about hedging. It DOES NOT inhibit anyones strategies. It just changes the way their positions(Exposures) have to be represented in the platform. (And stops brokers taking a second grab of the spread by cunning) (Also means some EAs and so on need to be redesigned to adjust)
I don't know why we have to have the FIFO bit (something from futures/options expiries i guess.) , but to trade... all that matters in this world is your overall exposure to a particular market during a certain period of time. It's up to your broker to give you a platform that's easy to manage your positions with and still complies with all regulations.
Don't stress. It's how it should be. Nothing much changes.
(And leverage over 100:1 not allowed? Who cares? lol That's quite reasonable)
Bundy's status today: "Waiting..."
