Quick Question for FXCM users (in the US)

What’s the difference between adding stop and limits from my chart and adding stops and limits from a market order? Apparently they’re different but I don’t what’s different about them yet…

Stops and Limits – FXCM Support Portal

Thank you for the reply but it’s not exactly what I was asking.

I think I found my answer though, although I’m not certain. When I right click on my chart I see a “Stop/Limit (Net)…” option. Using common sense, net means net position. So using that stop/limit option would create a stop/limit for all your shorts and all your longs. It doesn’t close individual positions. It closes them all. Furthermore, this type of order doesn’t appear to show up on my list of orders. Therefore, I’m assuming it’s client-side, which means if I shut off my PC, it won’t trigger? Will need to confirm on a demo or something…

(Let me add that my demo is different from my real account for some reason. There are more options! I think it’s because it’s a UK demo while my real account is in the US.) Damn fxcm.

Sorry, I didn’t see you follow up but thought I figured out what you were asking. I put a link in my post above. Hope it helps.

Hi Kashix,

All stop and limit orders on your FXCM account are server side, not client side. That’s the case whether you you create a stop and limit along with your initial market order, or add net stops and limits after your trade is opened. The difference between net stops/limits and the stops/limits you set with a market order, is that net stops/limits apply to your entire net position in a given currency pair regardless of its size, while stops/limits you set with a market order are for a specified amount of currency determined by the size of the market order.

Example 1: Setting Stops/Limits with Market Orders

I place a market order to buy 100k EUR/USD at 1.3500, and as part of this order, I set a stop at 1.3375 and a limit at 1.3750. A few minutes later, I buy another 50k at 1.3500, but I don’t set a stop or limit with my market order this time. If the market later hits my stop price at 1.3375, only 100k will be closed out, while the other 50k will remain open. That’s because my stop order is for exactly 100k EUR/USD.

Example 2: Setting Net Stops/Limits

I place a market order to buy 100k EUR/USD at 1.3500, but I don’t set a stop or limit with this order. Instead, I wait until the trade is open and then set a net stop at 1.3375 and a net limit at 1.3750 from the Summary window. A few minutes later, I buy another 50k at 1.3500 and again don’t set a stop or limit with this order. If the market later hits my stop price at 1.3375, then my entire 150k EUR/USD net position will be closed out. That’s because net stop applies to my entire net position in EUR/USD.

The reason why your FXCM US live account executes stops and limits differently than your FXCM UK demo account is because US accounts with all brokers are required to comply with CFTC regulations regarding FIFO (first-in, first-out) execution. That means if you have multiple positions open in a given currency pair, then the positions must be closed in the order in which they were originally opened. If you would like a demo account that mimics how stop and limit orders are executed on your FXCM US live account, then you can get a free FXCM US demo at FXCM.com

Please let me know if you have any additional questions.

Jason