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Old 07-03-2009, 11:04 AM
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phil838 phil838 is offline
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Join Date: Aug 2008
Location: Arkansas, USA
Posts: 1,793
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It's not just FXCM, it's all US based brokers. The problem is that stoplosses connected to individual orders are now against NFA rules. But...

Brokers like GFT and Oanda don't really use stoplosses anyway. It looks like a stoploss to you, but it's actually just an opposite pending order that's closing your trade. That's why GFT isn't making any changes... They are already following the new rules and have been for years!

Say you have a long position open at 1.500 for 1 lot. If you want a 50 pip stoploss then a short pending order will be set at 1.450 for 1 lot. If 1.450 is hit your short order cancels out your long order, effectively acting as a stoploss.

The same is true for takeprofit orders. That's where the OCO orders everyone is taking about come in. Your SL and TP will officially be "One Cancels Other" orders, meaning if your SL or TP is hit then the other order is canceled automatically.

You'll still have the protection of "stoplosses" no matter your broker, you'll just have to hit a different button and the "behind the scenes" accounting of it will be different.
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