[B]Notice to FXCM Traders: [/B]
[B]How NFA Requirements Will Impact Your Account.[/B]
[B]For Immediate Release:[/B]
Media Contact: Jaclyn Sales, [email protected]
[B]New York, July 1, 2009―FXCM Holdings LLC [/B]wants to notify all traders on the changes that will occur after July31, 2009. The National Futures Association (NFA), the primary regulatory authority for forex in the United States, has implemented new compliance rules which will impact clients trading.
[B] Effective after July 31, 2009, the NFA will require all U.S. regulated Forex Dealer Members to execute trades on a first-in-first-out basis (FIFO) as per Compliance Rule 2-43 (b)[/B]. FIFO requires that when multiple positions are held on the same currency pair, the position that was first opened will be the first to be closed.
[B]As a result, forex traders will no longer have the ability to selectively place stop-loss or limit orders on individual trades, nor will traders be able to modify or close trades from the “Open Positions” window. [/B]
The NFA’s stance is that FIFO provides more transparency to customers, offering a more accurate picture of the P/L on multiple positions than viewing results of individual positions. This also brings the forex market more in line with the practices of the futures and equities markets.
FXCM has always encouraged active risk management through the use of stop-loss and limit orders. Stops and limits are essentially two entry orders that are linked to an open position in the opposing direction. If a stop or limit order is triggered, the other is canceled.
[B]In response to the new NFA rule, FXCM has introduced a new feature called OCO (One Cancels the Other) entry orders,[/B] that will provide traders with essentially the same functionality as stop and limit orders except they are not linked to one position. [B]Watch This Video Presentation To See How Clients Can Manage Risk Using OCO Entry Orders[/B]
For additional information, please visit the “NFA FIFO (First in First Out) Rules” forum on DailyFX. We will be holding live question and answer sessions within the DailyFX forum. [B]Visit Now[/B]
[B]WANT TO KEEP YOUR ACCOUNT FUNCTIONALITY? TRANSFER TO FXCM UK[/B][B]: [/B][B][/B]
[B]If you wish to transfer your account to FXCM UK, please complete the one page form. Account Transfer Form[/B]
[B]DEADLINE TO COMPLETE EARLY-OPT IN: JULY 8, 2009[/B]
[B]DEADLINE TO COMPLETE LATE-OPT IN: JULY 21, 2009[/B]
[B]FXCM Holdings LLC Facts[/B]
[I]As of January 2009[/I]
[ul]
[li]FXCM Holdings LLC has over $100 million in capital [/li][li]More than 125,000 live accounts are traded on FXCM trading platforms [/li][li]An average of $500 billion in notional volume is traded each month on FXCM trading platforms [/li][li]In excess of $500 million in customer funds trading on platforms offered by FXCM [/li][/ul] Trading FX, CFDs and Spread Betting on margin carries a high level of risk, and may not be suitable for all investors.[B][/B]
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