FOREX Changes Are HERE!!!

 

The FX industry has been changing at a rapid pace.  New rules and regulations are NOW influencing the way you trade Forex... 

How will this affect you? 

 

Did you know that by July 31, 2009 the new FIFO rule may drastically effect the execution of your current EA’s!

 

Stop-loss orders and limit orders may not comply with the FIFO ruling because stop-loss and limit orders do not necessarily close the oldest position on a currency pair first. As stop-loss and limit orders may no longer be in compliance with US regulations, U.S. FDMs may be required to remove them from accounts after July 31, 2009.

 

Did you also know that there is a proposed rule to DECREASE leverage? 

 

MAJOR REGULATORY CHANGES: AFFECTING ALL MT4 and EA USERS 

 

The United States National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC) are implementing NFA Compliance Rule 2-43 on July 31, 2009 which will have pending dramatic consequences for traders in the U.S., especially Metatrader 4 users and EA users.

 

Why is the NFA implementing this new ruling?

The NFA's position is that FIFO provides more transparency to customers, offering a more accurate picture of an account's Profit/Loss than viewing the results of individual positions. This ruling brings the Forex market more in line with the practices of the futures and equities markets.

 

 

CHANGES:

 

FIFO: First In First Out - Execution

Mandates that the first order in must also be the first order closed.

 

Leverage:

If passed, will likely restrict Forex Dealer Members to 100:1 leverage on major currency pairs and 25:1 leverage on non-majors.

 

 

HOW IT AFFECTS YOU

Metatrader 4 Platform

As of June 20, 2009 MetaQuotes has not confirmed they will be able to comply with FIFO (First In, First Out) execution by July 31, 2009.

 

If this is the case, traders working with U.S. regulated brokers will be unable to continue using Metatrader for many EA strategies.  

This major new rule will go into effect after July 31, 2009.

 

 

Expert Advisors

 

There is a potential that drastic numbers of Expert Advisors will no longer be functional. Trading strategies will be greatly limited.
 

See the UK Brokers that continue to offer you solutions to these changes by:

Clicking here

 

My Broker of choice - BACK BAY FX is situated to prepare you for continued success in the retail Forex market.  There are multiple options and solutions for all trading styles possibly in jeopardy.  Please contact us for more details at:

Back Bay FX Services, LLC                                
Office: 1-617-357-6100
Fax: 1-617-357-5100
Email: info@backbayfx.com  
Web:  http://www.backbayfx.com
Skype: Backbayfx