No more SL and TP at the same time (for NFA brokers)?

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noone22
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No more SL and TP at the same time (for NFA brokers)?

Postby noone22 » Sun Aug 02, 2009 9:44 am

I've received emails from several Forex groups today,
saying that from next Monday new rules are coming in
effect for NFA regulated brokers (MB Trading including).

The most dangerous news for me is following:

Directive #2: No way to open orders with StopLoss and TakeProflt
levels set

One of the most fundamental aspects of trading is money management
and the best way to achieve that is with correctly placed StopLoss
orders to accompany each trade opened.

Another important aspect of money management is being able to take
a proflt on an open trade. Once again, the NFA disagree with long-held
principles of trading because one of their new rules (takes effect this
weekend) will not allow StopLoss and TakeProflt orders to be specified...
you must choose one or the other!

I am sure that this little revelation will send you searching for your crystal
ball so that you can accurately predict which type of order you will require
before actually placing each new trade :-)



I couldn't believe this.
Is this really true?
My broker hasn't sent any info on the matter.
What will happen with TTO orders and with trading in general,
if trader won't be able to place TP and SL at the time of order placement?

If this is the case, I have to search for UK based ECN broker.

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PTG
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Postby PTG » Sun Aug 02, 2009 9:59 pm

Well I wouldn't be surprised. You have to understand that this would be done "for your own good" :smt097 as if you weren't grown up and conscious of the ins and outs of what you are actually doing.

Anyway. The email I received from MB Trading (I copied it somewhere in another thread) doesn't indicate that this is the case at this point in time, "just" that hedging isn't possible any longer. This hasn't been the case with MBT Navigator anyway, so apart from some rearranging the daily statement everything is the same.

We will know in a short while. It appears to me that member companies would not want to accept this monstrosity since it will cause them to lose customers big time.
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Patch
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Postby Patch » Sun Aug 02, 2009 10:16 pm

Why in the world did NFA feel it necessary to level trading restrictions on the international forex market?

What are the ways to legally get around this intrution?

What are the ways to get around this intrution?

I will contact Ninja trader tomorrow and see how this affects their dom and other trading platforms.

Patch
ENOUGH being a Yalie for me Back to the Sea. "What i can lose, i can win" "YES YOU CAN" - dragon33 -"Pick one method and one pair and stick with them until you master it. "The choice is yours - success or failure." TRO

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PTG
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Postby PTG » Sun Aug 02, 2009 10:36 pm

Patch wrote:Why in the world did NFA feel it necessary to level trading restrictions on the international forex market?

What are the ways to legally get around this intrution?

What are the ways to get around this intrution?

I will contact Ninja trader tomorrow and see how this affects their dom and other trading platforms.

Patch


Patch,

Perhaps you might want to consider reading this thread on Forex Peace Army before kicking some serious butt :smt021

There's always a way around stupid rules by stupid bureaucrats 8)
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Postby kc8flq » Mon Aug 03, 2009 3:03 am

This is a response from MBT that I recieved a few weeks ago when I inquired about the FIFO changes . They use whats called price averaging when you have multiple entries on a pair. So a s/l and t/p will still be feasable, at least with MBT.

Thank you for your email. This new NFA rule will not effect your MB
Trading Futures Inc. trading account and the MBT Navigator. TTOs will
still operate as usual. Please feel free to contact us with any further
questions or concerns.

Thank you and have a good day.

Sincerely,

Vincent Pulizzi

Customer Service Representative
MB Trading Futures Inc.

MB Trading Futures Inc.
1926 E. Maple Ave. El Segundo, CA 90245
Phone:1(866)558-3342 Fax:1(310)356-3115 E-mail: fxsupport@mbtrading.com
Give a man a fish.... feed him for a day...
Teach a man to fish.... feed him for a LIFETIME!!!

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