FXDD Still Allow Hedging?
In an announcement on their website forex broker FXDD say that:
In our effort to provide the best solution for your trading regarding the NFA’s new rule on hedging, please know that we have been in contact with the NFA and have offered several solutions which we believe will accommodate almost all types of trading strategies and comply with the NFA rules. Our discussions with the NFA are ongoing and we will keep you advised. In the mean time, know that FXDD is making no immediate changes to any platforms and that you will be fully advised prior to any proposed changes.
In the Frequently Asked Questions section on their website FXDD still say that:
FXDD does offer hedging allowing customers to open short and long trades on the same pair simultaneously in our MetaTrader platforms.
This seems to imply that when the markets open again after the weekend FXDD will still allow hedging in their MetaTrader accounts. It also seems to imply that after the weekend FXDD will be violating NFA rule 2-43(b). This will be an interesting situation to keep an eye on!
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Comments on FXDD Still Allow Hedging?
This needs updating. FXDD or ATC Brokers are not violating anything. They are doing FIFO in the backoffice and waiting for MT4 transactions to complete to reinstate the hedged offset positions avoiding FIFO occurring right on the MT4 platform. FIFO is taking place but not on the MT4. When your hedged positions are closed, backoffice statement and MT4 transactions will then match. In any case, MT4 balance, equity statements are the true statements. Eventually when all trades are closed, the statement will match.