For those that have FXCM accounts or I guess any account where you can use Stop's; they will no longer be available on July 31. They will be changing to the OCO method (One Cancels the Other) type of stop. Here is a link to their video to help you understand how this works.
https://admin.acrobat.com/_a205571165/p91063619/
Never put a link up before so I hope it works.
Happy trading!
Moderators, let me know if there is a better place to post something like this.
Thanks
I trade with GFT and they're net based not position based so this does not effect me at all and GFT stays the same! Screw the NFA and their restrictions. I think ODL has already cancelled its NFA membership, cant wait to see how many other brokers move offshore or cancel NFA membership.
EVerybody go with GFT or an offshore broker UK brokers are good!
"History will be kind to me for I intend to write it. "
Winston Churchill
Ok I took a closer look at this.
It seems like there is a lot of misinformation being spread.
On some dealers stop and limits will be removed. You can set a OCO which is just as good if not better than standard stops. This new ruling can affect some methods but my method remains unaffected.
The best thing is that you can always just open an account with a UK broker. Screw the NFA and their limiting rules. If you do not want to trade on a FIFO based system open an account with a UK, Swiss, Canadian or Aussie broker.
"History will be kind to me for I intend to write it. "
Winston Churchill
I am switching from FXCM US to FXCM UK.
There, things will remain the same, and I have the option of hedging trades if I want.
Stay Cool!
wonder what happens if retail forex brokers in America shut down???
"History will be kind to me for I intend to write it. "
Winston Churchill
The move was to prevent hedging which the NFA sees as charging a double spread for what is esentially a zero position in the market. I wouldn't think it would affect you at all Nick even if you were in the U.S.. If you pyramid your position you would find the rules have some very nasty consequences. Protecting speculators from speculating, sounds like rubbish to me. We always have the options to take our business overseas if we choose to do so. Since American regulation is rubbish anyway it might be a good idea.
The U.S. Govevernment couldn't block the movement of capital which would trigger some very nasty WTO challenges by some very big players like the EU and could lead to a flight of capital from the U.S.. Not really worth it just to keep people from hedging.
CoolJ, Nick hit it on the head. You can switch of course but OCO is really the same thing. I have a GFT and an FXCM account so I am already used to OCO. There's a little more that you can do with OCO but in its most basic use you simply do the opposite of your position to close your trade. If you're long 1 lot, you sell 1 lot to close it. Thanks to Nick and Fetor (that's right, I blame you guys ;))I opened an account with GFT and I'm very happy I did. I'm only saying this in case you ever want to take a look at another broker with nice charts. I had a very scary experience with GFT but they came through and fixed it in about 5 minutes so I can vouch for their customer service and honesty. Whatever you do, good luck to you.
Not sure about other brokers, but I had my account with FX solutions in the US. When the rules were changed I thought the same as you just have seperate stop and limit orders. Well, the day of those changes came and I tried that ... it didn't work. So I moved my account to their Australian branch.