Thread: NFA New Rule Not allowing stop and limit orders

Http://www.fxcm.com/lp3-nfa-fifo.jsp

ouch, interesting to see if all of the mt4 platform brokers wind up needing to do so. I would think 99% of the clients would never think of trading in such a dreadful trading environment where you can't place a stop order...

Originally Posted by ;

http://www.fxcm.com/lp3-nfa-fifo.jsp

Should you read the whole post it states:

FXCM has introduced a new feature called OCO (One Cancels the Other) entrance orders, which can provide traders with the same functionality as stop and limit orders except they are not linked to any loion. For further info, please visit the NFA FIFO (First in, First Out) Rules

MB Trading has something similar that does the same thing for a stop and limit order. It seems that it just can't be linked to an open order. No big deal, it has the same function and outcome.

The thing I am asking is WHY?? Who does this help... the banks and brokers. what real purpose does this serve ???

Originally Posted by ;

True, however I dont even know how that operates in metatrader.

I'm with MB Trading, that are an ECN and about to start live MT4. They already have it in demonion and stated they will have a fix to the FIFO rule. They already have it in their own live platform where two transactions are made and made one transaction, therefore there's no problem. We'll see how it goes with MT4. I guess that the reason why these bucket stores can't handle it is that they want to keep an advantage.

Steve,

Does that mean, I must see my order live without stop loss and as soon as the trade goes against me, I must move it into OCO to close the order????

Originally Posted by ;

Yes I did and I'm transferring to fxcm uk

,

I'm considering transferring my account into FXCM UK as well but will the money in our accounts become safe or be placed into segregated accounts since we will need to stick to the rules of a foreign country and perhaps place ourselves in their mercy?

Dump place Currency Market and exchange futures contracts longer term and none of the is a problem.

This sucks big time. I get the impression that there are too many traders out there making a living using EAs rather than sitting in the front of the computer all day - possibly making the professionals seem poor.

The playing area can't be flat for too long.

New NFA rule could be.
You are not allowed to draw profit more than your initial investment.

Originally Posted by ;

It appears to me that this principle has been misunderstood or misread. I trade with Oanda. I asked them now about it and this is what they said....


Short Description: FIFO rule query

Dear M******,Thank you for your interest in FXTrade.OANDA's FXTrade platform
currently operates with 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 eliminating our Stop Loss or Limit order function from this platform.
Should this ever change, then we'll certainly...

The reason why Oanda will not be effected by this is because all transactions around precisely the same pair are placed in precisely the same trade position. Therefore, in the event that you make 5 buys on precisely the same pair all it does is add to a place therfore FIFO does not count because there is but 1 position. MT4 does not function like that. Should you make 5 transactions on precisely the same pair you will get 5 different positions consequently enacting the FIFO law so in order to get out the very first trade has to be shut and so forth.

This new rule is dumb and dreadful. What sucks most is UK brokers aren't permitted by law allowing US citizens to open an account with them. The only broker I have found which can help us would be forex.comUK that I truly don't want to go to.