Are Any US Based FX Brokers going to have Stop Loss and Limit Orders? FXCM has decided to disable stop loss and limit orders as of July 31, 2009 as their means of becoming with the new FIFO. Is any US based broker going to continue to offer bracketed stop loss and limit order? I know that the FIFO rquirement is supposed to bring forex in line with futures practice, but with IB and Infinity, I can still trade futures by placing a stop order for entry with a stop loss and profit limit order that will be entered if my entry is filled. FXCM will require that OCO orders for stop loss and profit taking be manually entered after your entry order is filled. This will require being tied to the screen more, rather than being able to set an entry order and knwoing that if it is filed, your risk is automatically managed. Thank You, d
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 âOpen Positionsâ 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 âNFA FIFO (First in, First Out) Rulesâ forum on DailyFX. We will be holding live question and answer sessions within the DailyFX forum. Visit Now The NFA, our industryâs 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 NFAâs 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 NFAâs 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 âOpen Positionsâ 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. Deposits | Withdrawals | MYFXCM.com Best regards, FXCM Micro Financial Square 32 Old Slip, 10th Floor New York, NY 10005
"The NFAâs 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." WTF??? This is totally, totally incorrect! These are the most byzantine, arcane rules I've ever seen and they have no relation whatsoever to how futures and equities are handled.
I may be wrong, but I think the question is are there any us forex dealers where traders will still have the ability to place stop loss and limit orders on their positions. You quoted a letter from FXCM, who may have an interest in leading their customers to believe that all FX brokers are doing away with stop loss and limit orders, when in fact this may be an FXCM specific response. The whole thing sounds bizarre to me - was this really what the NFA intended?
If this BS is real and true... Move over to CME Currency Futures: You'll have substantially more order control: Market, Limit Stop Stop Limit Market if Touched Market to Limit Market on Open Market on Close Trailing Stop Loss Trailing Stop Limit Iceberg Plus flags for DAY, GTC, FOK, IOC, AON OCO's OSO's and a plethora of strategy orders and... Currency Future Options.
No hedging and no stop loss/limit orders means I will actually have to watch the screen. I just wonder how this will effect there automated trading platform. It also seems like a push to put all accounts over to their UK branch. What is next no FX trading at all..... I starting trading metals now anyways but what a pain this is! Akuma
This is beyond suicidal. Stop losses are a life saver for people who have no desire or ability to watch the screen 24/7. Limit orders are useful too.
That all depends on the broker you use. The CME doesnât offer all that, individual brokers do. Both the hedging and stop and limit situations can simply be solved by instituting One-Cancels-Other and One-Sends-Other orders. That way if you get filled on an order, you automatically send a stop and limit to protect the position, itâs very simple. I know that all the notices FXCM sent about the hedging, it seems they werenât very happy about it. I also didnât like it because I like the ability to scalp hedges against bigger posititions, now it just all gets screwed up and I havenât quite adjusted to it. Like I said, if they just had OSO orders, it would be fine. Oh and FXCM does already offer trailing stops. I havenât used them, so I wouldnât be the one to ask about them.
You would still be able to put a stop in, just not on an indivual trade. If Eur/Usd is 1.4100, you can put in a buy at 1.4080 and then put in a separate sell stop order at 1.4060. You can do that right now. The problem is the limits. You would have to implement a One-Sends-OCO order whereby once an order is filled, it sends a stop and limit (or just stop or limit) that cancel the other once one of them is filled. Itâs very simple.