Pharaoh
Brigadier General
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LPOA is short for Limited Power of Attorney. In forex trading, this is an agreement by a client to allow an account manager to trade. It should clearly spell out the compensation for the account manager.
It should also have terms requiring that all positions be closed and all trading be stopped if drawdown (from both closed trades as well as floating loss on open trades) exceeds a certain percentage of the highest balance achieved by the account in order to protect the clients account from crazed account manager induced margin call syndrome (CAMIMCS*).
*Yes, I did just make the name CAMIMCS up, but it really does happen.
It should also have terms requiring that all positions be closed and all trading be stopped if drawdown (from both closed trades as well as floating loss on open trades) exceeds a certain percentage of the highest balance achieved by the account in order to protect the clients account from crazed account manager induced margin call syndrome (CAMIMCS*).
*Yes, I did just make the name CAMIMCS up, but it really does happen.
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