New NFA Order Rules

Discussion in 'Forex' started by Brandonf, Aug 5, 2009.

  1. Brandonf

    Brandonf ET Sponsor

    I'm just curious how those of you who trade FX have been effected by the new order handling rules the NFA put into effect on stop orders, limit orders and bracket orders etc?

    What have you done to get around it? How has it effected your profitability.

  2. Good question, I know there's a lot of debate about it on another forum.

    For some reason it hasn't made any difference on Oanda, absolutely no change to the way orders are handled/executed or to placing stops/limits on individual trades. It's strange as I thought they were NFA regulated.

    The more important part of 2-43 for me is the price adjustments rule, I've not had a busted trade for a few weeks now!
  3. sakhter


    You do realize you can have the same functionality, right? You can open 2 accounts and manage on the same screen.. you just need additional margin $ to make the opposing trade. vs earlier this year where when you made a hedged trade your margin would increase(now it decreases)


    Go to a euro-uk based broker, trade it like you never heard of the NFA.
  4. sakhter


    Oanda never allowed hedging. If you had open positions, and then sold positions, the selling would be filled from your opened positions. vs. naked short

    Oanda always followed FIFO..
  5. Not strictly FIFO though, I can close individual trades irrespective of when they were opened, ie I don't have to work off an aggregate position.
  6. sakhter


    I know, but I think you misunderstood me.

    FIFO in the sense of the order, not the aggregate.

    example" buy EURUSD@10,000. BUY EURJPY@15,000, close EURJPY@15,000, close EURUSD@10,000
  7. I'm still not getting it, your example is kinda normal isn't it, for two different pairs?
  8. If you look at the Oanda position window, you only always have 1 position per pair (that may have been established by more than 1 individual trade, and that may have multiple stop and target orders associated). Since you always only have 1 position, im guessing you can make a case for fifo compliance.
  9. sakhter



    You are working "mini aggregates" for different pairs.

    Another example:

    EURUSD@10,000 BUY
    EURUSD@10,000 BUY
    EURUSD@15,000 SELL

    You have a EURUSD@5000 Buy position still active.
  10. Ah ok, but what about the individual trades in the trades tab? I never usually sell to close a long (although in effect it's what I'm doing), I click on the trade in the trades tab and close it from the ticket. That could be my first trade for 100k or my last trade for 150k on the same pair. Or aren't they saying they have to be done in any specific order? I thought First In, First Out meant just that, first opened, first closed?

    You know what else I found out the other day, according to NFA you can still have open long and short positions on the same pair as long as they're mark to market at end of day!
    #10     Aug 5, 2009