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yes I watched it - I'm not saying I agree with it but its probably workable.
As I said not being able to link your stops with particular orders greatly increases the chances of leaving an unintended order in if you close a position manually . in fact I almost did it tonight just now.... so yes there is a downside. I certainly prefer the oanda execution method to that of CMC.
just relocate tto UK if it bugs you enough
I think this shows how the credit crunch and the crisis etc have induced regulators to do stuff which tries to convince the masses they are fixing the problems. This sort of thing could gain momentum if the economy keeps going down.
Kinda like how they brought in circuit breakers after the '87 crash society
Innovators always find new ways to circumvent regulations though
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Jason Rogers
Moderator Join Date: Jun 2009
Posts: 7
Quote:
Originally Posted by AV1
I understand we are no longer allowed to use STOPS and LIMITS the way we used to.
Simple question.
If I open one position, can I close this position at any time without opening another position?
Thanks in advance,
AV1
Hi AV1,
The answer to your question is No. The "close" column in the Open Positions window will be removed on FXCM LLC accounts (US Entity) post July 31st, 2009. Therefore, the only way to close an existing position will be to place an new opposing market or entry order of the same amount. This will offset the existing position as hedging is not enabled on FXCM LLC accounts.
Example:
You have a Buy 20K EURUSD position. As opposed to clicking on the close price in the Open Positions window, you would need to place a new order to Sell 20K EURUSD.
The only other way this position could be closed without a new order would be if the account suffered a margin call. In this case all open positions would be closed at the current market price.
Thanks, Jason
As far as I can see when this rule comes into affect you will no longer be able to run a stop,set or trailing or hit a close button,so short of watching it like a hawk then spending f#ck knows how long setting the opposing trade to get out,(and not Fing that up) you are in the laps of the FX gods,might as well just fall on your sword now.
US fx accounts will be draining of money big time this month as everyone moves there accounts overseas.
Cheers
Miner
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Not so much a case of bugs me peat just that I simply am out of business with these new rules,no stops no way hozay.
Cheers
miner
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And as it's after midnight it's my birthday and I'll cry if I want too :-).
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of course you can have stops. you simply have an opposing order in place.
HAPPY BIRTHDAY!!!
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May work for longer trades(with set targets) useless for scalping,not to mention if you have more than one open long say on a pair with the first in first out rule you can easily end up with an unwanted entry,time will tell peat but a big f up if you ask me,as you say another sign that uncle sam is in the sh#t,maybe I'm just getting grumpy in my old age :-).
Cheers
Miner
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Forget playing a move like this when the change comes into affect.
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Hi Miner
Not sure if Oanda is affected because you cant hedge with them (i.e. have orders in both directions, unless you open a separate sub account).
Also I noticed last week when I had 2 winning orders on, I tried to close the whole of the 2nd order, but it took that quantity off the first order.
arco
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Hi Arco I haven't been able to hedge with fxcm for a while,as far as I know this change will affect all US based dealers,so you may be getting an email soon from Oanda.
At the end of the day no skin off my nose as will just move account to the UK,just think it's a knee jerk headless chicken move by the powers that be in the US.
Been a nice move on eur/jpy,just went again.
Cheers
Miner
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Just got this email.
Dear CompassFX client,
As you may have already heard, the National Futures Association (NFA) has adopted a new Compliance Rule 2-43 regarding Forex trading.
http://www.nfa.futures.org/news/news...ArticleID=2273
This rule states that Forex Dealer Members (FDMs) may not carry offsetting positions in a customer account, but must offset them on a First-In, First-Out (FIFO) basis. FIFO means that when multiple positions are held in the same currency pair, the position which was first opened will be the first to be closed.
Also, stop-loss orders and limit orders may not comply with the FIFO ruling because stop-loss and limit orders do not necessarily close the oldest position on a currency pair first. As stop-loss and limit orders may no longer be in compliance with US regulations, U.S. FDMs will be required to remove them from accounts after July 31, 2009.
Why is the NFA implementing this new ruling?
The NFA's position is that FIFO provides more transparency to customers, offering a more accurate picture of an account's Profit/Loss than viewing the results of individual positions. This ruling brings the Forex market more in line with the practices of the futures and equities markets.
How are CompassFX clients affected?
The recent "No Hedge" ruling and now the "FIFO" ruling brought about by NFA Compliance Rule 2-43(b) will mean that traders may no longer be able to trade using the MetaTrader 4.0 through a U.S. regulated FDM. Also, these U.S. traders may no longer have the ability to place stop-loss or limit orders. Nor will traders be able to modify or close trades from any "Open Positions" window.
This major new rule will go into effect after July 31, 2009.
What options is CompassFX providing clients?
We know that this ruling will affect most every trader, especially those using the MetaTrader 4.0 platform. Therefore, CompassFX has established relationships with FX Solutions Australia and Gain Capital U.K. Our website is updated with the latest account documentation links to these well established firms:
http://www.compassfx.com/compassfx/open_account.htm
FX Solutions Australia and Gain Capital U.K. offer MetaTrader 4.0 with hedging and full stop-loss and limit order capability. Both firms are registered and regulated by their respective authorities.
FX Solutions Australia is a registered business name of IFX Markets Ltd. and is authorized and regulated by the Australian Securities and Investments Commission (ASIC). IFX Markets Ltd holds Australian Business Number 77 114 282 174. GAIN Capital - FOREX.com UK Ltd. ("FOREX.com UK Ltd") is authorized and regulated by the Financial Services Authority (FSA).
Both firms are working with us to provide our clients a smooth account transition.
If you trade on the FXDD MetaTrader platform, we have not heard the position of FXDD moving forward. Our hope is that they have a plan expected to be released soon. We will inform our clients as soon as we know their plans.
Let's address some questions…
If I switch my account to FX Solutions Australia or Gain Capital U.K., what account protection is available?
The FSA is the regulatory body that oversees spot Forex trading in the United Kingdom and requires Forex accounts to be fully segregated in accordance with FSA client money rules. To learn more about Gain Capital U.K. and the FSA, click on these links:
http://www.forex.com/uk/
http://www.fsa.gov.uk/Pages/About/What/index.shtml
The ASIC is the regulatory body that oversees spot Forex trading in Australia. To learn more about FX Solutions Australia and the ASIC, click on these links:
http://www.fxsol.com.au/
http://www.asic.gov.au/asic/asic.nsf...e?openDocument
How do I open a new account at FX Solutions Australia or Gain Capital U.K.?
CompassFX has updated the account documentation on our website at:
http://www.compassfx.com/compassfx/open_account.htm
How do I fund my new account at FX Solutions Australia or Gain Capital U.K.?
Gain Capital U.K. provides convenient ways to fund a trading account by bank wire, debit card, and credit card transactions. Click on this link for more information:
http://www.forex.com/uk/forex_account_funding.html
FX Solutions also offers clients easy and convenient methods to fund their accounts bank wire, debit card, and credit card transactions. Fund a new account with as little as $250. Click on this link for more information: http://www.fxsol.com.au/accounts/deposit-funds.asp
Can I get a demo account at FX Solutions Australia or Gain Capital U.K.?
Yes. CompassFX has demo account registrations ready. Click on this link to review MetaTrader platforms offered by FX Solutions Australia and Gain Capital U.K.:
http://www.compassfx.com/compassfx/open_account.htm
It is our goal at CompassFX to provide Forex traders the proper tools and resources to trade well. We have and will continue to create strong alliances with regulated Forex brokers and make the necessary additions and adjustments for the well being of our clients.
We will continue to act on your behalf as a liaison between you and the clearing firms. And, you can depend on us to provide continued customer support, education, and resources to help you become a better trader.
If you have any questions or concerns, please email us at support@compassfx.com
We look forward to continue serving you.
Best regards,
Compass Foreign Exchange LLC
2083 N. Collins Blvd., Suite 200
Richardson, TX 75080
Tel +1 (800) 577-3600
Tel +1 (972) 680-8080
Fax +1 (972) 680-3355
http://www.compassfx.com
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Cheers
Miner