I have to release some anger about NFA Anti-Hedging, here it goes...
[...] From what I heard, NFA is doing this to help out newbies and protect us.
See page 6 onwards of the attached document.
The penultimate paragraph on page 7 alludes to both brokers and the NFA getting fed up with complaints from customers who thought that hedging would provide a cast-iron protection against margin calls. The reference to a "managed account" on page 8 effectively includes a number of commercial EAs and - more unwittingly - a number of amateur EAs as well.
What is truly breath-taking over this is that no one has considered cover trades, i.e. a short-term counter trade while leaving the main trade on
Covering is used by institutions & large players, why not us?
Snag is it looks like hedging...
This whole thing is a very un-American restraint of trade :(
Needless to say, I did have some NFA regulated accounts - I dont anymore!
FWIW
-BB-
Needless to say, I did have some NFA regulated accounts - I dont anymore!
Ditto. And the good news is that the FSA say that they have no plans to follow suit.
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I believe the NFA is up to something big time. From what I heard, NFA is doing this to help out newbies and protect us.
I don't like this kind of help. Hedging should be a choice. If you don't know how to hedge, then don't hedge.
For me, I like it. If I lose or win, that is my choice.
Here are the safety measures that I want from NFA, not more and not less:
1) Reduce conflicts of interest between brokers and clients.
2) Make sure my money will be there tomorrow; this means that my money will not be stolen and run away with.
And that is all I want from the NFA. Strategies like hedging again should be a choice. Damn the NFA, now
my forex winnings will be more medicore (average) instead of superior. Hedging makes a lot of difference.
It is like having an A grade and a B grade in a class. Hedging is an A! Now, I have to settle for average.
Average is for losers!!!! I guess I will have to transfer my account to oversea such that it will not be regulated by the NFA.
Without NFA, the risk is that my money might get stolen and run away with. This kind of scam can happen oversea.
What a pain, now I have to choose between NFA and oversea. I am so ticked off. Okay, I feel much better now.
I have released my anger. Just disregard my message and don't reply to me.