BlueMental
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- 15
Greetings All.
As I am sure you are aware, that in the United States, hedging used to be a run of the mill tool to use in trading Forex.
It has been set by current 'guidelines' of NFS and is not as of yet a bill passed in legistlation. They are however working towards this end. (That is a different topic that I wont go into in this post)
Now you might wonder why I brought this up at all.
If I wish put a GbpUsd short targeted to mature in 6 months time. While I wish to place a GbpUsd long planned to mature in 2 weeks time, whilst at the same time I wish to do intraday trading of the same GbpUsd.
With the new set of 'rules' I can not do this in the same account. For what reason is used by NFA for eliminating Hedging, I have no idea. You would think Hedging was a shady deal used by unscrupulous thieves.
Now think about this, "XXXX" Bank trades on a minute by minute basis in all directions with all of the currency pairs. It is a natural part of the daily customer transactions, as well as the process of investment of the liquidity available to the banks.
The banks are not the only institutions that do this.
Now assuming the No Hedging 'rule' bill gets passed. Then that means that there would have to be a separate legal bill passed for banks and other institutions that currently (even though we can not through American Brokers) do hedge trading on a daily basis.
Where in the American Bill of Rights does it state that segregation and elitism are there for the benefit of the conglomerate against the individual trader?
What is good for the goose is good for the gander.
BlueMental
As I am sure you are aware, that in the United States, hedging used to be a run of the mill tool to use in trading Forex.
It has been set by current 'guidelines' of NFS and is not as of yet a bill passed in legistlation. They are however working towards this end. (That is a different topic that I wont go into in this post)
Now you might wonder why I brought this up at all.
If I wish put a GbpUsd short targeted to mature in 6 months time. While I wish to place a GbpUsd long planned to mature in 2 weeks time, whilst at the same time I wish to do intraday trading of the same GbpUsd.
With the new set of 'rules' I can not do this in the same account. For what reason is used by NFA for eliminating Hedging, I have no idea. You would think Hedging was a shady deal used by unscrupulous thieves.
Now think about this, "XXXX" Bank trades on a minute by minute basis in all directions with all of the currency pairs. It is a natural part of the daily customer transactions, as well as the process of investment of the liquidity available to the banks.
The banks are not the only institutions that do this.
Now assuming the No Hedging 'rule' bill gets passed. Then that means that there would have to be a separate legal bill passed for banks and other institutions that currently (even though we can not through American Brokers) do hedge trading on a daily basis.
Where in the American Bill of Rights does it state that segregation and elitism are there for the benefit of the conglomerate against the individual trader?
What is good for the goose is good for the gander.
BlueMental