Dodd Frank Title 7 Dodd-Frank Wiki Page Black box forex trading the U. A is on a fast tract to be at the bottom of the world. Example how Dodd Frank is forced on the U.
Citizen in what should help the common U. Citizen but acually hurts the U. I am going to use Forex Markets as the example but this can be any market. Houes, Cars, Boats, Airplanes, Land, Stocks, Indexs, even stuff like cattle! FIFO Rule as applyed to Forex Forex is not futures, stocks, indexs or any other kind of market! There’s absolutely no reason to have FIFO as it should never be use in any market.
Lets say a computer is doing algorithmic trades and has 100, 200, or 300 orders on an account. Exiting positions in the exact manner that they were entered, in such situation, is impossible. Why should any trader have to exit positions in the same order as they were entered? Leverage as related to Forex Increased leverage IS NOT correlated to increased risk. The regulators force members to say that an increase in leverage is an increase in risk. This is mathematically and logically incorrect. Increase in leverage MAY increase risk, however it is NOT CORRELATED!
For example, if your use of the leverage is for hedging purposes, in this scenario, increased leverage DECREASES risk. PAMM PAMM stands for Percent Allocation Management Module. The problem is for Forex managers, trading many client accounts as one. FXCM, Oanda, and Gain Capital have a Monopoly on retail FOREX. If you are left in the U.
Broker Dealers The NFA is no more an FOREX regulator than FINRA. FOREX should be regulated on a banking level, perhaps by the Federal Bank. It was thought that currencies are financial commodities, and since FOREX futures were already offered at the CME, the CFTC seemed to be the natural regulator for FOREX. Intimidating Foreign Brokers There isn’t any law that strictly prohibits a retail U. Companies from opening a foreign FOREX account. Confessions of an Economic Hitman, they simply do not allow U. The rules don’t apply to the one per centers or in FOREX LINGO QEPs, ECPs.