The point of that article is to talk a little bit about new NFA rules, their possible consequences and influence on Forex signals industry. You see, hedging was ended with NFA registered brokers, which is not very good thing. But at the same time good news is that brokers were restricted to wreck profits by claiming price feed errors. That will certainly influence all services, providing Forex signals, because lots of traders will have to change their strategies in some way.

There are some interesting details about FIFO (first in, first out) rule, that gonna be implemented soon. NFA seems to be planning to apply FIFO to all positions on a currency pair, not only hedged trades. This means if you have 2 separate orders on a pair, you aren’t able to close the 2nd position before closing the first one. You can only close them in the order that you opened them or all at once (I wonder who had an idea of implementing that). So, you can’t run a long-term strategy and do some intraday trading at the same account. That means, that Forex signals providers will have to specialize in one sphere of trading or move their trading to NFA non-registered brokers.

The second point is about stop-losses and take-profits applied to individual orders. If this rule is implemented, after July 31st, 2009 there won’t be any possibility to set a proper stop-loss or take-profit on any platform with an NFA registered broker. Of course, you are able to set up several OCOs (One Cancels the Other) on some platforms, which will be somehow like take-profit and stop-loss. But you have to be very correct about placing OCOs in order to cover all your positions but not go over or under.

And finally, the worst of the worst for people using Meta Trader 4. Currently, NFA brokers don’t seem to accept pending orders that would make your position on a pair neutral because of the NFA’s anti-hedging rules. The end effect of those new rules is that if you are MT4-user and you open a second position on a currency pair, there won’t be any possibility to set a stop-loss. To my mind that will be a real disaster for all Forex signals providers working with brokers, registered at NFA. And I don’t think that many people will like following such insecure Forex signals, given according to new NFA rules.

So, it’s obviously, that if NFA continues such policy, that won’t do any good to Forex in the USA. Obviously, a lot of trading will quickly move to non-NFA brokers outside the United States. And Forex signals industry will continue to develop without touching American clients, tied up with new NFA prohibitions.