Forex Customers Will No Longer Be Allowed Open Hedged Positions
I received an email from my broker regarding the changes in forex trading. I personally don’t use Hedging as a strategy, but wondered if this change had something to do with the recent economy down turn.
Dear Customers:
Interbank FX, along with all FCM’s, has received information from the NFA that we wanted to pass along to our customers. All registered FCM’s have received a new Compliance Rule 2-43 regarding forex trading. On May 15, 2009, forex customers will no longer be allowed open “hedged” positions in their accounts. Please see an excerpt from the new NFA rule below. If you are currently using Hedging as a trading strategy, we would encourage you to use the Interbank FX Demo accounts over the next month to help modify your trading strategy. Also, for those of you who utilize hedging strategy with your “Expert Advisors”, we would encourage you modify your code and test your advisor on the Interbank FX Demo servers as well. In order to assure a smooth transition for our customers to the new NFA Compliance Rule, Interbank FX has set May 8, 2009 as the last date that customers will be able to Hedge open positions.
rajesh said:
Apr 20, 09 at 3:16 amEven otherwise, it is better to avoid hedging positions, though it is useful for locking the profits, it limits the profits too.