11 Responses to “NFA FIFO Rule for Forex”

1. on 10 Jul 2009 at 6:31 am1Deb S

   Thanks James, for doing the update on FIFO rules. Do you think they(NFA) will change the leverage for forex as well?

2. on 10 Jul 2009 at 5:46 pm2James Chen

   Hi Deb,

   Thanks for visiting and for your comments! The NFA may indeed change leverage maximums for registered firms. But I’m not sure when that might happen. Thanks, Deb!

   James Chen

3. on 14 Jul 2009 at 12:26 am3Linda

   Hello James, thank you for the video on the new NFA rule. I need some clarification here. What if I have only ONE position open with 2 lots, will I still be able to place stop loss and limits on that one trade as I do NOT have any other trades open. Any help would be appreciated.

4. on 14 Jul 2009 at 1:54 pm4James Chen

   Hi Linda,

   Thanks for your question! The answer is yes. If you have only one position with 2 lots, you will still be able to place orders to close one or both of those lots at either a profit or a loss. Hope that helps. Thanks, Linda!

   - James Chen

5. on 15 Jul 2009 at 11:35 pm5Linda

   Thanks James for replying, so this means I will be able to put stop loss and limits when I have ONE position of two lots after July 31.

6. on 16 Jul 2009 at 2:11 pm6James Chen

   Hi Linda,

   They will not actually be called stop losses and limits anymore, as they will actually be entry orders that will take you out of the position. But the process will be essentially the same. If you have only one position with 2 lots, you will still be able to place entry orders to close one or both of those lots at either a profit or a loss. Thanks, Linda!

   - James Chen

7. on 27 Jul 2009 at 2:39 pm7Owais Sharif

   Hello James Thanx for providing such a usefull information.
   But i cant understand y u cant place a limit or stop loss order when u have multiple positions in account?

8. on 27 Jul 2009 at 4:21 pm8James Chen

   Hi Owais,

   Thanks for your question! The only problem with placing stop losses and limits on multiple positions is that the first trade entered would have to be the first trade exited according to FIFO. You will still be able to put orders in to close your positions at a profit or a loss, but if you have multiple positions, they will have to be closed in the order that they were entered. Hope that helps. Thanks, Owais!

   - James Chen

9. on 28 Jul 2009 at 2:33 pm9Owais sharif

   Thanx Chen.
   M just confusing abt that rule.
   FIFO has no major effect u can cut ur positions with any one on ur side? on paper or software. Continue hedging whatever your online account says it doesnt affect your equity.

10. on 28 Jul 2009 at 5:07 pm10James Chen

    Hi Owais,

    Thanks for your follow-up. Here is a quick tutorial about how it works if you would like some more clarification: http://www.fxsolutions.com/learning-tools/tutorials/nfa/fifo.asp . Hope that helps clear it up some more. Thanks, Owais!

    - James Chen

11. on 12 May 2010 at 9:19 am11saint John

    hi,the FIFO rule would have been better if properly implemented and pass to the awareness of every forex trader.
    Because i was trying to close an order yesterday and it fails due to the FIFO rule which was my first time of seeing it.
    So,how is the FIFO rule apply,its principles and effects on traders

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