Thread: NFA New Rule Not allowing stop and limit orders

Originally Posted by ;

The reason why Oanda will not be effected by this is since all transactions on the exact same pair are placed in the exact same trade position. Therefore, if you make 5 buys on the exact same pair all it does is add to your position....

No, actually, I can open numerous positions on the exact same pair, in the exact same direction, and also the exact same trade size. It shows each trade separately and that I can place different take profits on any position I select.

Originally Posted by ;

Hi,

No plans as of yet. The outline window will show your rankings combined into one big position, but you'd still need to put in a separate OCO order behaving as a stop/limit. I'm taking all your suggestions and opinions and making it known inside FXCM.

Jason

Actually you would not need a separate OCO order. If all of the places were combined into one position, then FIFO would function fine using a stop tied into that one position because the whole order would be removed whenever the stop or make profit hit. This would still allow entry orders for a few partial take profit (TP) while not forcing me to alter the OCO. With that which you guys have planned, should I take a partial profit on a position, then I must go and change the OCO. It's more dangerous for me.

Anyway, please consider what I am stating as it could be simpler on the programmers and us traders.

Thanks

Hi All,

that I just wanted to throw this in here. . At IBFX that the MetaTrader platform will continue to function as it does today.

Will have some FAQs and a video describing everything shortly. .

Interbank FX Announces Compliance with the New NFA FIFO Rule, Retaining All Platform Order Functionality Including Expert Advisors -Interbank FX's proprietary backoffice alternative offsets positions adhering to FIFO rule-
SALT LAKE CITY -- July 20, 2009-- Interbank FX (IBFX.com), a worldwide provider of online foreign currency (Forex/FX) trading, announced today a solution for NFA Compliance Rule 2-43 affecting all NFA regulated Forex brokers.

Using our proprietary backoffice options, Interbank FX enables our Meta Trader 4 platform to remain 100 percent compliant, while retaining order functionality and flexibility for customers trading. The MT4 platform will continue to be our customers have experienced over the last several years. This includes the ability for customers to use fully operational Expert Advisors, Stops Losses, Take Profits, Trailing Stops and Limit Orders without making any necessary alterations.

”Certain US competitors have decided that their answer into this new FIFO rules would be to move their customers abroad, instead of being compliant,” explained Todd Crosland, Chairman and President of Interbank FX. ”In Interbank FX, we've embraced the NFA's efforts to help protect customers and supply a seamless solution without any adjustments to their current trading egies”

The single modifiion for customers are their daily and monthly account statements, coming straight from the proprietary Interbank FX backoffice system using NFA FIFO offsetting procedures. The FIFO rule takes effect beginning July 31/August 1, 2009.

Interbank FX is currently focusing on a step-by-step video which will be available shortly on our web site, http://www.ibfx.com/.

About Interbank FX

Headquartered in Salt Lake City, UT, Interbank FX, LLC (IBFX) is a supplier of online Forex trading services, supplying individual traders, money managers and institutional customers proprietary technologies, resources and eduion to exchange spot foreign currency on the internet.

Unlike other off-exchange retail foreign currency brokers, IBFX has distinguished itself among industry leaders using its distinctive multi bank liquidity nourish, proprietary resources and services, and outstanding focus on customer care. This has contributed to longer term relationships and to numerous awards and industry accolades, including Best Online FX Provider, Best Foreign Exchange Broker, Best Chairman, Ernst and Young Entrepreneur of the Year, and Inc 500.

IBFX functions more than 35,000 clients from over 140 countries around the world and has affirmed a trading volume in excess of US$80 billion in one month. The Business is regulated as a member of the National Futures Association and is also registered with the Commodity Futures Trading Commission as a Futures Commission Merchant. Trading at the off-exchange retail foreign currency market is among the riskiest forms of investment available in the financial markets and suitable for sophistied individuals and institutions. The possibility exists you could sustain a substantial loss of funds and therefore you shouldn't invest money which you cannot afford to lose. With all major news releases, there's the chance of substantial price volatility. IBFX is not liable for any damage or loss, including without limitation any loss of profit, which might arise from the usage of Dow Jones FX Select or reliance on such information.

Originally Posted by ;

Hi All,

I just wanted to throw this in here. . At IBFX the MetaTrader platform will continue to function because it does now....

Thank. God.

I hate FXCM's scare tactics.

Originally Posted by ;

Hi All,

that I just wanted to throw this in here. . At IBFX that the MetaTrader platform will continue to work as it does today.

Is going to have some FAQs and a movie explaining everything soon. . Marilyn

Firstly, happy birthday Marilyn. Back to the topic, not about fifo but hedging. I am not hedging fan rather than hedging but when I can not start a sell limit order without shutting the prior buy order first, how do you say the platform continue to work as before? I simply don't get it, why a pending order in reverse direction can be consider hedging when it's not yet active? I am not hedging yet since it's still pending. That is how I view it.

Know from the colleague through live support that this kind of trade can not be accepted by the system. I wish you can bring it up and do something. At least allow it if take profit for the prior long order is set to lower than the sell limit price, so it close first ahead of the pending brief order being execute. Nevertheless NO hedging. I would like to brief at the specific price, such as this I can not anymore anyhow being in front of the platform 24/7.

Thought?

I've read most of the articles in this thread but not one of them ask the ideal question (except post #13),'' WHO BENEFITS FROM THOSE RULES, certainly NOT the trader.

Now how about some BROKER RULES, e.g. a principle against searching down quits, a rule against raising spreads indiscriminately, a rule against tardy salvation of PROFITS. Get the drift. If the NFA is likely to be honest, how come they have NOT addressed those important matters which influence TRADERS.

All in all, it seems the NFA is there for its Brokers and TRADERS are the suckers!

Pipsqueak2

Originally Posted by ;

I've read most of the posts in this thread but not one of them ask the ideal question (except post #13),'' WHO BENEFITS FROM THOSE RULES, certainly NOT the trader.

”This measure was taken for customer protection and market transparency,” explained Larry Dyekman, the Treasury association's director of communiions. ”We feel that other ways of offsetting trades would deceive some customers into thinking that their accounts were more profitable than they really are. By employing this first-in, first-out method, which is how it's done on the futures exchanges, clients will have a much clearer perspective on where their account stands at the conclusion of the day.”

http://www.bloomberg.com/apps/news?p...d=agM.0z6yEfvI

Originally Posted by ;

”This step was taken for customer protection and market transparency,” explained Larry Dyekman, the futures association's director of communiions. ”We feel that other ways of offsetting trades would mislead some customers into thinking their accounts were more profitable than they actually are. By employing this first-in, first-out method, which is how it's done on the futures exchanges, customers will have a much clearer view on where their account stands at the end of the day.”

Http://www.bloomberg.com/apps/news?p...d=agM.0z6yEfvI...

That's exactly what they WANT us to think, I say BS. Since if the rules were to shield TRADERS why did they never rule against the practise of stop hunting and disperse baiting? And don't you rule contrary to Brokers with sticky fingers who want to hang on to profits as long as possible? Additionally if traders enjoyed the rules on the Forex market, they'd exchange there instead, (unless there is a rule against that also ).

All of the rules so far are TRADER constricting rules, the Broker is NOT TOUCHED. I think there are some BAD brokers out there. They are those who need laws (principles ). The issue (if there is one) is traders ' at the mercy of Brokers who exchange contrary to their clients and have a mindset of never losing no matter what.

Surely there are good and bad brokers, so its up on the NFA to restrain the bad ones. That, to my understanding, they haven't done.

Pipsqueak2

Thanks for sharing this useful information. It is great.


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http://dossierdesurendettement.org/

The reasons for introducing these regs are farcical. Please, we do not need your hand wringing nannying to'protect' us from ourselves. I have never read these shit in all of my days. Simplest answer is do not do business with a USA based forex broker.