Thread: Closed: Discuss EUR/USD News with a DailyFX Analyst

Dear Client:

A major new National Futures Association (NFA) rule goes into effect on August 1, 2009. This rule affects all U.S. 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.

FXCM has always encouraged active risk management through the use of stop-loss and limit orders. Stops and limits are two entry orders that are linked to an individual open position. If a stop or limit order is triggered then the other is canceled. FXCM has introduced a new feature called OCO (One Cancels the Other) entry orders, which will provide traders with the same functionality as stop and limit orders except they are not linked to any position. Watch This Video Presentation To See How To Manage Your Risk Using OCO Entry Orders

For additional information, please visit the “NFA FIFO (First in, First Out) Rules” forum on DailyFX. We will be holding live question and answer sessions within the DailyFX forum. Visit Now

The NFA, our industry’s self regulatory organization in the United States, has adopted Compliance Rule 2-43(b). Read Compliance Rule 2-43 (b). This rule requires 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 by 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.

While FXCM acknowledges the NFA’s concern and obligation to protect clients, FXCM would like to extend an option to those who would like to continue using stop-loss and limit orders, and who understand the underlying implications. Traders can transfer their accounts to Forex Capital Markets Limited (FXCM UK) and continue to place stop-loss and limit orders and maintain the ability to modify and close orders from the “Open Positions” window.

If you wish to maintain your current platform functionality, you can trade through FXCM UK, which is regulated by the Financial Services Authority in the UK. Learn More

If you wish to transfer your trading account to FXCM UK, please complete the one page form. Account Transfer Form

DEADLINE TO COMPLETE TRANSFER FORM: JULY 8, 2009

Important Notice: If you completed the transfer form, your account will be operational prior to the implementation of the new NFA regulations. You will be notified via e-mail when your account is transferred.

Your account number and password will remain the same and your open positions will remain intact. Moving an account to FXCM UK involves some changes in deposit and withdrawal instructions, and changes in charges for transferring funds. However, FXCM UK clients have the option to send funds to a bank in the United States and fund via credit card. MYFXCM.com will also be available.

Best regards,

FXCM Micro
Financial Square
32 Old Slip, 10th Floor
New York, NY 10005

This is great news? How so?

Originally Posted by rickos69

Dear Client:

A major new National Futures Association (NFA) rule goes into effect on August 1, 2009. This rule affects all U.S. 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.

FXCM has always encouraged active risk management through the use of stop-loss and limit orders. Stops and limits are two entry orders that are linked to an individual open position. If a stop or limit order is triggered then the other is canceled. FXCM has introduced a new feature called OCO (One Cancels the Other) entry orders, which will provide traders with the same functionality as stop and limit orders except they are not linked to any position. Watch This Video Presentation To See How To Manage Your Risk Using OCO Entry Orders

For additional information, please visit the “NFA FIFO (First in, First Out) Rules” forum on DailyFX. We will be holding live question and answer sessions within the DailyFX forum. Visit Now

The NFA, our industry’s self regulatory organization in the United States, has adopted Compliance Rule 2-43(b). Read Compliance Rule 2-43 (b). This rule requires 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 by 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.

While FXCM acknowledges the NFA’s concern and obligation to protect clients, FXCM would like to extend an option to those who would like to continue using stop-loss and limit orders, and who understand the underlying implications. Traders can transfer their accounts to Forex Capital Markets Limited (FXCM UK) and continue to place stop-loss and limit orders and maintain the ability to modify and close orders from the “Open Positions” window.

If you wish to maintain your current platform functionality, you can trade through FXCM UK, which is regulated by the Financial Services Authority in the UK. Learn More

If you wish to transfer your trading account to FXCM UK, please complete the one page form. Account Transfer Form

DEADLINE TO COMPLETE TRANSFER FORM: JULY 8, 2009

Important Notice: If you completed the transfer form, your account will be operational prior to the implementation of the new NFA regulations. You will be notified via e-mail when your account is transferred.

Your account number and password will remain the same and your open positions will remain intact. Moving an account to FXCM UK involves some changes in deposit and withdrawal instructions, and changes in charges for transferring funds. However, FXCM UK clients have the option to send funds to a bank in the United States and fund via credit card. MYFXCM.com will also be available.

Best regards,

FXCM Micro
Financial Square
32 Old Slip, 10th Floor
New York, NY 10005

I know, I did not switch when they took the hedge feature away because it was not a big deal for me...but this is annoying ....and they are talking about limiting the leverage too....enough....I am switching for the UK

The funny thing the way they explain it or the rationale behind their action , they say it is in our best interest as customers....hmmm....I do not need your protection..I know I am trading with leverage and I understand it.

If someone does not understand, he/she needs to read more before open an account....but do not take away from me leverage (which I understand works both ways) because someone else does not understand it.

how that will help brokers here in the US? I bet they are loosing clients to their european counterpart....I opened an account in switzerland two months ago when I READ about their proposal to reduce leverage....I have 300:1 with my broker in the swiss land....

annoying

Originally Posted by adam6655nyc

I know, I did not switch when they took the hedge feature away because it was not a big deal for me...but this is annoying ....and they are talking about limiting the leverage too....enough....I am switching for the UK

The funny thing the way they explain it or the rationale behind their action , they say it is in our best interest as customers....hmmm....I do not need your protection..I know I am trading with leverage and I understand it.

If someone does not understand, he/she needs to read more before open an account....but do not take away from me leverage (which I understand works both ways) because someone else does not understand it.

how that will help brokers here in the US? I bet they are loosing clients to their european counterpart....I opened an account in switzerland two months ago when I READ about their proposal to reduce leverage....I have 300:1 with my broker in the swiss land....

annoying

BTW, great post in ze ozer forum. Actually, it vill zound a leetle French too!

Adam, are there extra costs / risks associated with switching to the UK account? I watched their video and thought about calling them but I'm tired of trying to get answers from the @#&%! that I've been getting connected to in the past.

LAST MONTH's REACTION to the JOBS REPORT: June 5, 2009 10:09 ET: FOREX GETS IT RIGHT before equities and bonds. Forex initially curtailed its risk appetite trade before equities joined in by sending stocks from +1.2% to -0.1%. The initial reaction in forex, bond and equities markets to the jobs report focused on the smallest job loss in 8 months (-345K vs expectations of -530K), while shrugging the 0.5 jump in the unemployment rate to 9.4%--highest since 1983. But FX later cut dollar losses by 200-pts in minutes, by dragging down EUR, AUD, GBP and CAD. Some analysts are stating the payrolls wqere erroneous according to the BLS birth-death model. GBPUSD tests below $1.60 and EURUSD eyes 1.3970.

Originally Posted by txnomad

Adam, are there extra costs / risks associated with switching to the UK account? I watched their video and thought about calling them but I'm tired of trying to get answers from the @#&%! that I've been getting connected to in the past.

No, and they take care of all the paper work ...etc
I will give it a try as I am not willing to see the NFA reducing my leverage...
I do not care how they justify it ...I do not need their protection...I know what I am doing.

Originally Posted by adam6655nyc

No, and they take care of all the paper work ...etc
I will give it a try as I am not willing to see the NFA reducing my leverage...
I do not care how they justify it ...I do not need their protection...I know what I am doing.

Thanks. My paper-trading is going really well and want to get back to real trading now that I have time, but as you say, these new rules are just the thing to push clients away.
BTW, Greatly enjoy yours and other's posts here, for confirmations and ideas, thanks for those.

This is for the folks that liked the Fibonacci patterns I used to post:

EUR/USD update 1 fxaprendiz for everybody

And this is for the newbies:

NFP fxaprendiz for everybody

I tried opening a new blog in here and also a new thread without success. I hope this post works, if nothing else, just to say HI...

Not much time now for trading and posting, not even in my own website, but I miss many great people in here ( actually that's the reason for writing this post; the links are only for your entertainment, hehe)

I'll see you when I see you !

7th,
Not sure why your last post re Fib analysis was deleted before I had a chance to save
for later digestion. Pls let me know if u ok to repost or PM me.

I have another book called Breakthrough in Techical Analysis - New Thinking From The World's Top Minds and chapter 5 actually covers Brown's price projection using the Fib
analysis! I didn't quite pay much attention to it but now that you mention I better go
back and re-read.

Cheers,
SD

Originally Posted by rickos69

Dear Client:

A major new National Futures Association (NFA) rule goes into effect on August 1, 2009. This rule affects all U.S. 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.

FXCM has always encouraged active risk management through the use of stop-loss and limit orders. Stops and limits are two entry orders that are linked to an individual open position. If a stop or limit order is triggered then the other is canceled. FXCM has introduced a new feature called OCO (One Cancels the Other) entry orders, which will provide traders with the same functionality as stop and limit orders except they are not linked to any position. Watch This Video Presentation To See How To Manage Your Risk Using OCO Entry Orders

For additional information, please visit the “NFA FIFO (First in, First Out) Rules” forum on DailyFX. We will be holding live question and answer sessions within the DailyFX forum. Visit Now

The NFA, our industry’s self regulatory organization in the United States, has adopted Compliance Rule 2-43(b). Read Compliance Rule 2-43 (b). This rule requires 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 by 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.

While FXCM acknowledges the NFA’s concern and obligation to protect clients, FXCM would like to extend an option to those who would like to continue using stop-loss and limit orders, and who understand the underlying implications. Traders can transfer their accounts to Forex Capital Markets Limited (FXCM UK) and continue to place stop-loss and limit orders and maintain the ability to modify and close orders from the “Open Positions” window.

If you wish to maintain your current platform functionality, you can trade through FXCM UK, which is regulated by the Financial Services Authority in the UK. Learn More

If you wish to transfer your trading account to FXCM UK, please complete the one page form. Account Transfer Form

DEADLINE TO COMPLETE TRANSFER FORM: JULY 8, 2009

Important Notice: If you completed the transfer form, your account will be operational prior to the implementation of the new NFA regulations. You will be notified via e-mail when your account is transferred.

Your account number and password will remain the same and your open positions will remain intact. Moving an account to FXCM UK involves some changes in deposit and withdrawal instructions, and changes in charges for transferring funds. However, FXCM UK clients have the option to send funds to a bank in the United States and fund via credit card. MYFXCM.com will also be available.

Best regards,

FXCM Micro
Financial Square
32 Old Slip, 10th Floor
New York, NY 10005

They will do what????

Originally Posted by melbgirl

They will do what????

Well Melb, you don't like stops anyway. As far as the limits are concerned, they do point out a workaround, although the trailing stop as we know it goes bye bye.

Say you sell at 1.00
If you want to get out at 0.8 you place an equivalent buy order at 0.8. Since there is no hedging, if the buy order hits, they cancel each other out, and the end result is the same. I don't know if I like their FIFO though.

Originally Posted by rickos69

Well Melb, you don't like stops anyway. As far as the limits are concerned, they do point out a workaround.

Say you sell at 1.00
If you want to get out at 0.8 you place an equivalent buy order at 0.8. Since there is no hedging, if the buy order hits, they cancel each other out, and the end result is the same. I don't know if I like their FIFO though.

What's FIFO? :-) This all sounds like going back to the age of dinosaurs.

Originally Posted by melbgirl

What's FIFO? :-) This all sounds like going back to the age of dinosaurs.

FIFO is an accounting principle First In First Out. It used to apply to costing and pricing. Now the term is used more generally. In this case, say you sell pair :

1. AB at 1.00
then again at
2. AB at 1.20
then again at
3. AB at 1.40

and the price is
AB = 1.30

If you start buying, (closing) they will close the one at 1.00 where you're losing money first, because you sold it first, and you have no choice.. the chronological order has to do within the pair and does not cross over to other pairs. Each pair deals with its own trades.

And stop insulting Dino (the Dinosaur)