goes on your own good behavior

Here's where the NFA outlined their ruling http://www.nfa.futures.org/news/PDF/...Adj_112408.pdf

It will bring the rules in line with those that are currently used in equities and futures. But most brokers keep individual tickes for each order that is placed instead of combining the amounts and averaging the entry price. So traders have built their strategies to manage individual tickets.

Will be interesting to see how this affects expert advisors. Curious, is anyone using expert advisors and concerned about the FIFO rules? Have you started to modify them to reflect new closing rules?

Please read the story in this link.... it seems as though FIFO may not change as much as some think. Time will tell...

http://www.gftforex.com/about/2009-a...090702-NFA.asp

Thanks for information. after reading GFT artical it apears that NFA do not say anything about not using SL and TP. they just want FIFO to follow.
GFT platform looks more smarter than other platforms.

I just saw the instructional movie put out by FXCM. The new ruling is a mess to deal with. Also FXCM stated that in the U.S. we will only be able to trade 1:100,000. This will kill profits, if we make any. I have already told IBFX that if they are following suit, I will stop trading Forex and go back to trading stock options and stock indexes. It is a sad day for Forex in the U.S. if this is the truth of how things are going to be handled from now on!!

Dave

P.S. If the trade ratio is firm for the U.S., one options is to take our Forex Business overseas (At a higher risk to us U.S. traders).

We can see that MT4 will be useless in all US brokers but does the same applies for MT5 since it makes only one position for every pair, and could that new rule be behinde the changes in MT5?, or will MT be deported from the US all together?

[indent]

I might not know what I'm talking about, but I can see how FIFO and SL or TP will work side by side for GFT
Like if you opened one EUROUSD position with 100 pips SL and a 100 pips TP and then opened another one with a 10 pips SL and a 10 pips TP then the second position will be closed before the first one which is a violation of FIFO
so I think GFT is only able to keep SL and Tp because they are a dealing desk and the positions you see on your platform are only an indication of what's going on in there pool rather than being actual separate positions on the market like in the STP type ,
Besides GFT already only provides 100000 lots for standard accounts so they don't have to change a thing............I think that their being a dealing desk with 1lot trade size is why I didn't choose them

It's really the metatrader/position-based execution platforms that werent built with FIFO in mind.

But the hedging rule could throw some stuff off with some of the automated trading. Especially like PFG Best (USA, MT4 broker) is allowing INTRADAY hedging. But if any hedge positions are not closed by 5pm EST, all positions in the same market up to the hedging positions will be exited on a first in-first out basis.

So if your ea has 10 long positions and then at 4:59 places a sell position, you might be screwed.

You would have to have a separate acct ea that watches for hedging positions and then will cancel them. Or modify existing EA if needed.

National Futures Association (NFA), forex industry self regulatory organization in United States, announced that it is now following the new Compliance Rule 2-43 regarding forex trading.
• This rule requires that orders be executed First In, First Out (FIFO). FIFO requires that when multiple positions are held in the same currency pair, the position which was first opened will be the first to be closed. Stop loss and limit orders do not comply with FIFO.
• The NFA's stance is that FIFO provides more transparency to customers, offering a more accurate picture of the P/L than viewing the results of individual positions. This brings the forex market more in line with the practices of the futures and equities markets.

or so they claim....

anyway, US is trying to control forex the same way as it did with gambling!

__________________
ForexExplore.com -Forex brokers reviews and rating.
Forex Blog-All forex secrets in one place.
ForexVote.com-Forex guide to brokers, bonuses, promotions and competitions.