A major new National Futures Association (NFA) rule goes into effect on August 1, 2009. This rule affects all U.S. regulated Forex Dealer Members. Forex traders will no longer have the ability to place stop-loss or limit orders. Nor will traders be able to modify or close trades from the �Open Positions� window. As these features will be removed, all stop-loss and limit orders held on FXCM LLC accounts at the close of trading on July 31, 2009, will be deleted.
FXCM has always encouraged active risk management through the use of stop-loss and limit orders. Stops and limits are two entry orders that are linked to an individual open position. If a stop or limit order is triggered then the other is canceled. FXCM has introduced a new feature called OCO (One Cancels the Other) entry orders, which will provide traders with the same functionality as stop and limit orders except they are not linked to any position. Watch This Video Presentation To See How To Manage Your Risk Using OCO Entry Orders
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. Visit Now
“If you wish to maintain your current platform functionality, you can trade through FXCM UK, which is regulated by the Financial Services Authority in the UK. Learn More”
But could this mean, other countries may follow this law ?
Here’s an except giving an explanation as to why Oanda won’t do the same thing as FXCM.
Some brokers are currently only applying FIFO to hedging. Talk to your broker asap to find out exactly how they are going to handle it.
tony: Jordan do FIFO chang our trading for long term?
jordan: confirming with Oanda right now
jordan: is Oanda getting rid of stops and limits (take profits) orders as per the new CFTC approved no hedging rules.
OANDA: No. New rules should not affect the FXTrade platform, as we are already in compliance with hedging restrictions and FIFO rules.
Regarding the FIFO ruling and it’s application by various brokers:
There is no consensus on the rule and how it is going to be applied. Some brokers are stating that MT4 will not be used (until MT5 is released) b/c it won’t be compliant, and others are saying that they have it compliant so don’t worry.
There is no consensus on whether it is just meant for hedges or for all positions (such as would be used in a grid strategy). Some brokers say it is for all and others just for hedges.
ok, so technically, we could still enter a trade with Stop-Loss.
Thanks for clarifying ! Whew… It’s just that the first sentences really freaked me out !
I don’t see the difference between placing an OCO and the traditional way of placing Stops, if any, just a a little.
The OCO order type is great for those that use breakout strategies and I wish Oanda had it. I have put off learning GFT until later this fall as I have too much going on right now. Their OCO and audible alert built into the platform itself is fantastic, no need to download some buggy EA. d.
That is crazy though they must have thought it makes good business sense for reason or another.
I suggest you show them your business sense and take your business to another broker and perhaps email their customer services explaining why you are leaving
They will no doubt log it somewhere or just bin it
I got this email yesterday as well. Reading your thread tymen I don’t think you’d affected anyway because of the way dealbook works. You know how you refer to “clearing the chart” after a trade so you don’t enter any new trades? Well with my platform when I entered a trade I would enter two seperate trades and exit one at 10 pips with a limit and another with 30 pips with a limit and set the same stop for both of them, when I saw you trade you would enter a 2k lot order for example and put a sell order at 1k for 10 pips and sell order for 1k at 30pips.
That’s what I’m going to have to do with FXCM now. More complicated but nothing I can really do at this point.
This is not a business decision, but a new ruling passed by the NFA requiring orders to be closed by FIFO rules. You can’t really oppose something that is required by law.
Traders can either continue trading through FXCM US using OCO orders to manage risk, or move the account to FXCM UK to continue trading as you always have been
