The top facts you should know about NFA’s Rule 2-43 (b) (FIFO)

Fri, 03 Jul 2009 13:09:23 -0400

NFA's rules designed to help customers in the U.S. but some traders are confused at the new rules and what it all means

The NFA recently imposed a rule (2-43 (b)) that will eliminate the ability of some dealers to offer stop-loss and limit orders. As a market-maker for forex, GFT is already fully compliant with this rule and will not be affected — you will still be able to place stop and limit orders with us.

Some dealers have gone as far as asking their customers to transfer their account overseas as to avoid the new NFA rule. At GFT, our customers can keep their account stateside and have full access to stop and limit orders through all DealBook® platforms.

The new rule also eliminates "hedging," which is really misunderstood when it comes trading currencies. Read the reasons why here.

Finally, some forex dealers have recently experienced a decline in net capital. As world-leading company, GFT has $80 million in net capital, which greatly exceeds the NFA's minimum net capital requirement and is $20 million above the next largest U.S. forex dealer.

Read the facts from the NFA here.

Read the facts from GFT here.

Read other forex industry opinions here.

Economic Activity Slows in Britain and the Euro Zone

Fri, 03 Jul 2009 10:30:17 -0400

Pound and euro pull back briefly in forex trading

Economic activity has shown signs of slowing again in Britain and in the euro zone as "economic green shoots" continue to wither. GFT's Boris Schlossberg comments on the flagging economies on the other side of the Atlantic in FX360:

The stall in economic activity confirms our suspicion that the recovery trade is losing momentum as final demand remains lackluster. As we noted earlier the overall picture, “indicates stability, but little further improvement in both EZ and UK and does not augur well for risk currencies going forward.” The Aussie remains the one exception amongst the majors as Australia continues to benefit from Chinese demand.

On the news, the pound and the euro pulled back in forex trading slightly. The U.S. dollar is gaining some favor as a safe haven.

Global Forex Blog | GFT Forex

The top facts you should know about NFA’s Rule 2-43 (b) (FIFO)

See Also

Economic Activity Slows in Britain and the Euro Zone

See Also