what happens if you subscribed to hedging signal while ur broker doesn't allow ?

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AbdAllah22
110
AbdAllah22  
Hello ,
I was wondering what will happen if someone subscribe to a signal uses hedging while his broker doesn't allow hedging (US) ?
will he just simply miss that hedging trade and none at all will happen Or the new hedging trade will close the original one and doing a lot of mess 
Thank you
Juvenille Emperor Limited
Moderator
11379
Eleni Anna Branou  
AbdAllah Azeez:
Hello ,
I was wondering what will happen if someone subscribe to a signal uses hedging while his broker doesn't allow hedging (US) ?
will he just simply miss that hedging trade and none at all will happen Or the new hedging trade will close the original one and doing a lot of mess 
Thank you

You won't be able to copy hedging positions in your account I imagine.
Samuel Akinbowale
4756
Samuel Akinbowale  
find another signal
Alok Dandekar
732
Alok Dandekar  

I have a US broker that doesn't allow hedging. If your signal opens a postion in the opposite direction, your MT4 account wont open the signal at all, and an error will pop up saying "hedging is not allowed".

Your original trade wont be affected.

William Roeder
18331
William Roeder  
Alok Dandekar: I have a US broker that doesn't allow hedging.
No US broker does. It's the law. Orders must be closed FIFO. It's the law.
ellingson.k
54
ellingson.k  
Generally speaking, the US broker won't even let you subscribe to signals that allow hedging. When I tried to subscribe to a signal (no hedging was used, but their broker allows hedging) I received an error message in the terminal that said 'subscription not permitted'. 
AbdAllah22
110
AbdAllah22  
ellingson.k:
Generally speaking, the US broker won't even let you subscribe to signals that allow hedging. When I tried to subscribe to a signal (no hedging was used, but their broker allows hedging) I received an error message in the terminal that said 'subscription not permitted'. 

I believe this has nothing to do is heading, that would be a temporary suspension for the signal itself
AbdAllah22
110
AbdAllah22  
whroeder1:
No US broker does. It's the law. Orders must be closed FIFO. It's the law.

So what are you saying , is it against alok's words ? Do you mean that the original trade will be closed and the new hedging one will be opened not rejected
britney Alston
43
britney Alston  
 It's the law and as a US resident you have to obey the rules and regulations. The reason behind why broker don't allow you is that broker has to answer for all your action that's why the broker may disable or incur additional margin when opening a hedge.
Alok Dandekar
732
Alok Dandekar  
AbdAllah Azeez:

So what are you saying , is it against alok's words ? Do you mean that the original trade will be closed and the new hedging one will be opened not rejected
I just tried to open a hedge on USD/JPY position on my US FIFO account, and a window popped up saying "hedge is prohibited". It did not close the original trade. I have attached a screenshot to prove this.
Files:
hedge_pic.PNG 62 kb
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