Thread: NFA New Rule Not allowing stop and limit orders

NFA will not be allowing stop and limit orders open positions either, because this conflicts with their FIFO - first-in, first-out - new coverage. This goes into effect.

Go NFA, Go NFA.

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Any ideas?

Originally Posted by ;

If you read the entire post it states:

FXCM has released a new feature called OCO (One Cancels the Other) entry orders, which will provide traders with the identical functionality as stop and limit orders except that they are not linked to some position. For further information, please see the NFA FIFO (First in, First Out) Rules

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

True, but I dont even know how that works in metatrader.

Originally Posted by ;

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

Move NFA, Move NFA.

? ? ? ?

Any thoughts?

Rumor has it, they are Outlawing Santa Claus too, because he brings false false hopes.

Originally Posted by ;

..

Originally Posted by ;

NFA won't 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.

Move NFA, Move NFA.

? ? ? ?

Any thoughts?

After reading this thread I did some research and found this post at FXAW from Paul Towne of BackBayFX.com

NEW Proposed Amendment to NFA RULE (2.43b)!

Hi All,

As part of the due diligence on the NFA's anti-hedging rule from April 13 (NFA rule 2.43(b)), we have been informed of a follow up or clarifiion from the NFA. We have never been able to get the NFA to confirm or deny, but we have heard from multiple independent sources.

The NFA has informed the clearing companies that they need to use First In-First Out (FIFO) accounting for retail traders. This has a significant impact on most of traders, but specifically MetaTrader4 consumers!!

FIFO accounting ensures that when a trader has a standing in a currency pair that was shaped by the combination of two orders, when the trader goes to shut out a part of that position, the first order in will need to be the first order closed. HUH? Here is a good example of the new ruling:

Trader bought 100,000 EUR/USD this morning (call it the morning trade), and bought another 100,000 this afternoon (call it the afternoon trade). So the total position is 200,000 EUR/USD. After the trader chooses to shut a part of his position by promoting 100,000 EUR/USD....the trader must shut the morning commerce. He/She can not shut the afternoon trade prior to the morning transaction. Sooooooo....

This ruling will significantly alter the use of Stop Loss and Limit Orders on open positions. Consider it....in the above example, you would not be able to put a Take Profit order on your afternoon trade until/unless you had closed the morning commerce; the final order of these open transactions must be FIFO! With no complex changes being made into the coding of the retail FX platforms, the clearing companies will need to eliminate the use of Stops and Limits.

This caution (once confirmed) will impact virtually all trading styles, but specifically effect the following egies:

- Martingale
- Grid Trading
- One Cancels Other (OCO) orders

Please note that the above is in addition to the primary portion of rule 2.43(b) which eliminates payoff for retail traders.

Please do not hesitate to contact me with any additional questions (contact information below).


(I removed his details since I wasn't sure if forum rules might allow, but PM me if you want the forum particulars )

Originally Posted by ;

After reading this thread I did some research and found this article at FXAW by Paul Towne of BackBayFX.com...

Thank you

Anyone else get the email now from FXCM regarding the elimination of limit and Stop-loss attributes?

Yes, me. I am now on the lookout for a good broker overseas.

Originally Posted by ;

Anyone else get the email today from FXCM regarding the removal of Stop-loss and restrict attributes?

Yes I did and I am transferring to fxcm uk