New Regulation for US forex Traders
EFFECTIVE October 18 2010
Dear Forex Traders,
This email is to inform you of the MAJOR CHANGES that are going to take place in the U.S Forex Market on October 18 2010. The changes will be drastic and effect how and where you're Forex trading will take place. The United States Forex brokers will be at a disadvantage against every other Forex broker in the world. This is the mandate of the U.S. government not the doings of any of these fine US brokers that you currently deal with.
As a U.S citizen trading at any U.S Broker such as: (Gain Capital, FXCM, FXDD, Alpari) and any of their off shore entities such as Gain UK, FXCM UK FXDD Malta etc. On October 18 if your account is traded at any of these brokers it will be closed and you will be asked to fill out new forms. You will be mandated by your broker to trade Forex at the U.S locations of any off shore broker. I have outlined the highlights of the new U.S rules
NEW RULES EFFECTIVE OCT 18 2010 for U.S RESIDENTS ONLY
* 50:1 margin on the four U.S crosses Euro/USD ,Gbp/USD, USD/Jpy and USD/Chf
* 20:1 margin on all other pairs offered ie Gbp/Jpy ect (These margin levels can be reduced at any time by the CFTC)
* NO HEDGING of positions will be allowed. Currently if you are at an off shore entity you can hedge
* FIRST IN FIRST OUT.(FIFO) If you have multiple positions on a pair you must close them out in order which they were opened
CURRENT RULES NOW IN EFFECT FOR U.S RESIDENTS
* 100:1 MARGIN ON ALL PAIRS. This means that you now receive $1 per pip for every standard lot you trade. Some of you trade at 200:1 margin which gives you an even higher payoff when you have a winning trade.
* HEDGING. If you trade at off shore entities you may hedge positions
* FIRST IN FIRST OUT. If you are trading off shore you may close any of your positions in any order you please
EFFECTS OF THE CHANGES
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