As some of you may or may not know, there is a new ruling coming down the pipes from the National Futures Association (NFA). This ruling (2-43(b)) will prohibit Forex traders placing hedge positions on their trades. There are pros & cons to hedging and there may be many opinions on this particular trading strategy. But that's not the point and not why I started this thread. The point is that it appears as though the U.S. brokers, and sanctioned by the government, have gotten together to take away a method of trading that can potentially offset losses or give traders a better chance of winning in the market. Hedging has been going on since man started walking upright. For some it works; for some it doesn't. But at least you have the option and I don't see anything illegal about.
I'm interested in hearing how all you guys feel about this ruling. Please spare us all from the why "You should/should not hedge...Blah, Blah, Blah"; that's for another thread. I'm only looking for your opinions and why you think the brokers colluded to do this. I personally hedge sometimes and, personally, this has ****ed me off to the Nth degree. Here's the full read if you are interested
http://www.nfa.futures.org/news/PDF/CFTC/CR2_43_ForexPriceAdj_112408.pdf
And for any of you brokers out there who happen to be reading this, just know that some people are going to find other ways to circumvent you. I would bet that if people started closing their accounts, en masse, as a protest, you guys would quickly "change your minds". This is the reply I got from one foreign broker who shall remain nameless:
"You are right the NFA rule changes have shown us an increase in enquiries from the States. Unfortunately we can't capitalise because we can't deal with you guys.
I don't really know why the NFA made the change, I'm sure their reasons were well considered. If clients wish to hedge then let them hedge, we're not expecting such regulation here in (city withheld) but then one never really knows for sure."
Go ahead and chime in guys; I'm all ears!
I'm interested in hearing how all you guys feel about this ruling. Please spare us all from the why "You should/should not hedge...Blah, Blah, Blah"; that's for another thread. I'm only looking for your opinions and why you think the brokers colluded to do this. I personally hedge sometimes and, personally, this has ****ed me off to the Nth degree. Here's the full read if you are interested
http://www.nfa.futures.org/news/PDF/CFTC/CR2_43_ForexPriceAdj_112408.pdf
And for any of you brokers out there who happen to be reading this, just know that some people are going to find other ways to circumvent you. I would bet that if people started closing their accounts, en masse, as a protest, you guys would quickly "change your minds". This is the reply I got from one foreign broker who shall remain nameless:
"You are right the NFA rule changes have shown us an increase in enquiries from the States. Unfortunately we can't capitalise because we can't deal with you guys.
I don't really know why the NFA made the change, I'm sure their reasons were well considered. If clients wish to hedge then let them hedge, we're not expecting such regulation here in (city withheld) but then one never really knows for sure."
Go ahead and chime in guys; I'm all ears!
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