No More “Hedging” for Forex Traders


The National Futures Association (NFA) has a new ruling which goes into effect on May 15, It addresses the practice of “hedging” in forex trading, which is the act of holding both long and short positions in the same currency pair at the same time.

So far, I haven't found an offshore forex brokers will allow US citizens to open an account. Invert Plus review - Is invertplus. It's going to get a lot worse before it gets better. The writer of this article is a moron.

Why Hedge?

NFA registered Forex brokers The National Futures Association (NFA) is a self-regulatory organization reporting to the U.S. Commodity Futures Trading Commission (CFTC). The NFA focuses on overseeing and regulating the U.S. futures industry, and forex brokers, such as kantieremisto.tk and Oanda choose to register with it for their U.S. operations.

Pips won or lost are assumed to be worth ten dollars per pip. Sample 1 — Baseline: Trades are not hedged and the position is left open through the balance of the price action. When a trader's model would signal the end of a hedge or opposing position, they would simply reenter the market at the current price.

It should be noted that this approach does not induce higher transaction costs and may actually reduce roll-over impacts that tend to favor the broker. Any alternative option for traders who want to continue hedging with NFA regulated broker?

Yes, it requires opening 2 accounts with either the same broker or two different brokers. This way traders will be able to Sell currencies on one account and simultaneously Buy currencies on another, achieving same hedging effect. There is a factor to keep in mind: After all, big brother knows what's best for you, right? While FIFO may work on traditional escalators that require an orderly transition from point "A" to point "B"- but in reality, markets work more like elevators going up and down, true?

This rule should only be imposed on government buildings with more than 20 floors where it belongs, and not in the capital markets. Hope president Trump repeals at least this part of this egregious rule. Only the so called "regulated brokers", love this However in reality this is merely a ploy to force investors to initially send more money to the brokers. The rich get richer while the retail investor pay the fees, so the big guys can trade for you.

Hey it's better than the bank CD, right? The no hedging rule just makes it so much easier for brokers to pluck off your stop loss. The brokers will tell you that a work around is opening 2 accounts so that your strategy can work on different time frames. Just send more money. So if your strategy buys from a signal on the 4 hour chart and sells on the daily chart, but only if you are rich enough to have multiple accounts.

The problems with opening an fx account abroad is that most of them do not offer cc and that is scary because banks do not offer e commerce or merchant account to business not deemed qualified.

Also some only accept EU cc. I am looking for other brokers that do that. The writer of this article is a moron. The new rules have crippled my forex trading. I believe they are also unconstitutional in our supposed "free" society. Let's say you buy a car, and then buy another car exactly the same, a month later.

Wouldn't you consider it rediculous for the government to tell you that you have to sell the first car first, before they "allow" you to sell the car you bought second. They have no right to do that. You are not hurting or misleading anyone. The new rules are illegal and unconstitutional in a supposed free society.

If you want to Hedge on MT5 have 2 client terminals in 2 family names, set up both with pending orders, 1 terminal will buy the other will sell. This angers me so much. Its getting harder and harder to make a profit doing anything in the US. I'm now committed to giving up my US citizenship and moving abroad, just so I can make a living at trading, I'm not going to do it immediately but look into it first to see the best way.

Once out, I can open a corp in a tax free country, like the Cayman Islands. Then I can make profits from my US profits tax free, legally. I'm not talking about green card wage earners, I'm talking about foreign investments in the US. As you all said, this person does not consider commissions, nor the impact of introducing complexity. I think this guy was also paid to write this article. This world is so scary, how governments and the super wealthy who control them, have used computer technology to come up with these regulations to track everything we do and extract as much as possible.

The most important NFA rules concern trading strategies, leverage and hedging: Aug 01 US forex traders to have greater transparency with respect to execution data Jan 06 Latest forex brokers Prime X Club review - Is primexclub. Invert Plus review - Is invertplus. PremiumTradesMarkets Review - is premiumtradesmarkets. PBN Invest Review - is pbninvest. Capital Group review - Is capital PTBanc Review - is ptbanc. So far, I haven't found an offshore forex brokers will allow US citizens to open an account.

Even the Forex brokers that supposedly allow hedging won't allow a US citizen to even open an account with them.

What are we supposed to do? The site ForexHoster seems to be a software subscription service. Welcome to experience the Broker Search on a whole new level! Forex brokers that allow Hedging. Try our Forex Broker Comparison. I find fxpro a good broker allowing hedging and and other tools plus a reliable broker. Hedging is allowed with ThreeTrades. Your broker won't report you obviously, or he'll lose a client: What does this mean?

I use IC Markets, I find that they are by far the best best broker for hedging. Oanda non US does not allow hedging. Tradefort - yes, they support hedging. Hi, Tradefort also support hedging. According to this site, micro-cents trading is offered by: Hi anyone, I am a US client, looking for a Broker that offers: Sorry, I'm not sure I understand you.

Can you add some information? What code is in the image? How to choose a Forex broker? How to become a Forex broker? Introducing broker vs White Label?

Margin calls vs Stop out levels? Market vs Instant execution? New Poll How many brokers have you changed during the 1st year of Live trading?:. I stayed with my first broker. Top 10 Forex brokers Alexa. Who's online There are currently 10 guests online. Basics Forex vs Binary Options - 2. Forex brokers that allow Hedging Hedging is one of the smartest yet trickiest strategy to apply in Forex trading.

Looking for advanced Hedging Forex Brokers Comparison? BrokerGuru April 4, BrokerGuru April 16,