Forex Fifo Rules
FIFO kills Forex Signals
The point of this article is to talk a little about the new rules of the NFA, its potential impact and influence in the industry Forex signals. You see, coverage ended with the NFA registered brokers, which is not very good thing. But while good news is that brokers merely destroy claiming benefits errors feed prices. That certainly affect all services, providing title = "Forex Signals"> Forex signals, because many traders will have to change their strategies in some way.
There are some interesting details on FIFO (first in, first out) Overall, it will be implemented quickly. NFA FIFO seems to be planning to apply to all positions currency pair, not only the operations coverage. This means that if you have two separate orders in a couple, are not able to close the 2nd position before close the first. You can only close in the order you opened them or all at once (I wonder who had an idea to implement that). Therefore, it can not execute a strategy long term and make some transactions of the day in the same account. That means, suppliers "> Forex signal providers will have to specialize in one area of trading or move their trade in unregistered agents NFA.
The second point is to stop losses and profit-take apply to individual orders. If this rule applies after July 31 2009 there will be no possibility of establishing a good stop-loss or take profits on any platform with an NFA registered broker. Of course, you can create multiple OCOs (One Cancels the Other) on some platforms, which in some way take profit or stop loss. But you have to be right about the placement OCOs to cover all their positions, but they are not more or less.
And finally, worst of the worst for people who use Meta Trader 4. Today NFA runners do not seem to accept the order book would make its position in a neutral pair, since the rules of the NFA to combat coverage. The net effect of these new rules is that if you are already MT4 and opens a second position in a currency pair, there is no possibility of a stop-loss. In my opinion, to be a real disaster for all Forex signals providers working with intermediaries, registered with the NFA. And I do not think many people will like it as a result of such Forex signals uncertainty, since according to new rules of the NFA.
Therefore, it is obviously that if NFA continues the policy that will do any good in the U.S. currency. Obviously, a lot of trading quickly runners will go to NFA not outside the United States. Forex signals and continue to develop industry untouched American customers, tied with the new NFA bans.
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