The American Exchange Regulatory Association NFA never ceases to amaze us. Surely, everyone has heard about the recent outrage on the so-called “hedging” – that is, if you use one of the NFA-licensed dealing centers for trading (note [email protected]: the vast majority of such brokerage firms are American) the same currency pair in different directions (simultaneous buy and sell orders) is closed. For fans of the simultaneous use of different trading tactics on the same brokerage account, a red flag was also raised.
But now the American regulators have shown uncommon ingenuity and creativity in the best traditions of Fidel Castro and Alexander Lukashenko: again new rules. From now on, it is impossible to open new orders with simultaneously specified StopLoss and TakeProfit levels. It’s hard to imagine what the NFA guys were guided by when making this decision (probably, the established rules of trading are not theirs for years), but it seems that traders now have to retrain into psychics, not otherwise That is, it’s pre-decided: either we win, either losing.
The story does not end there. Among the innovations there is another feature: the new rule, the so-called FIFO (First In, First Out). This condition requires consistency in opening and closing positions. Especially the innovation will hit traders who use the pyramid method in their trade: in the case of opening several deals for one currency pair in one direction (for example, several eurusd buy transactions), they will be closed in order of opening – first, the position opened first , then second, third, etc.
Apparently, the era of the illusions of the “unshakable reliability” of NFA-regulated brokers has passed.
Important: the new rules come into force on this weekend, so guys, be careful – if necessary, withdraw funds from NFA-regulated structures. It is highly likely that your trading experts will not function properly at the American-controlled dealing centers.
If you are trading in a non-US dealing center, the above rules should not bother you: European, Asian and offshore dealing centers continue to operate normally.