Forex strategies revealed | FSR Forum

guys, I hope someone could decipher what this new NFA rule means. This popped up in my fxcm-micro account, can't imagine trading without stop-loss orders .

" A major new NFA rule goes into effect after July 31, 2009 which affects all US 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.

For clients with Managed accounts, please consult with your money manager prior to taking any action. These changes may not affect your money managers trading strategy. "

So far this remains vague to me as well.
NFA will not be allowing stop and limit orders on open positions which may conflict with their FIFO policy (first-in, first-out) NFA Compliance Rule 2-43(b)

Which means, we'll still have stop loss orders, but they'll be forced to be applied to the oldest open positions of the same size on the same currency pair to meet FIFO rule. Again, this is my understanding of a story. As soon as I know more, I'll let you know.

This sounds scary

Is it only for the US based brokers as we havent had any of these updates coming from my Aussie CFD broker.

This is only for US based Forex brokers which are regulated by NFA.
With good intentions by NFA to protect investors, I believe this made a lot of them now glancing at overseas brokerage services with greater interest...

even though the post is from 2009 but man, its really hard to be a US trader with all the restrictions, even targetting of shore brokers, but some good brokers like LMFX allow us traders with not problem, but mostly my traders are done on hotforex, i can imagine complying with such strict rules, thats utter thievery