I just want someone to explain why some brokers do not allow this strategy. Does it affect the brokers in anyway? Can anyone give me brokers that allow hedging?
USA brokers have regulations to prevent excessive risk and hedging adds risk… Just find a NON US broker and you don’t need to worry about hedging restrictions but why hedge in the first place unless your running multiple strategies both directions which makes more sense.
as long as the brokerage is outside the USA or has a non-US subsidiary, the hedging is still allowed. NFA Compliance Rule 2-43 regarding forex trading (15th May 2009)" fter May 15, 2009, forex customers of FDMs will no longer be allowed to open “hedged” positions in their accounts"
:58: its just the law
I think this so-called regulation is taking away the best parts of trading. This means that if I want to get all the full features and juices of forex, I have to find a non US broker. Makes sense.