Quote:
Originally Posted by droesparky
I saw a note today where they are going to do a first in first out, type of thing with forex. first of all is that true?
Does it mean if you have a trade thats down and you enter to double down that you have to exit the original trade before you can exit the double down?
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The FIFO rule passed by the NFA will determine the order in which you can close out positions.
Right now, you can close out any trade you want in any order. That will change. First In First Out means that when you have multiple positions in the same currency pair, the position which was first opened will be the first to be closed.
If you trade with a US based broker, and have an expert advisor, you will need to make sure your expert advisor is configured properly to work with the new rules.
You may remember that the NFA also did away with hedging. The FIFO rule was a part of the same ruling which did away with hedging. They just gave brokers more time to institute FIFO.