Trading-Gurus.com » Hedging

Is High Frequency Trading a Force for Good or Evil?

Jim — Sat, 10 Mar 2012 14:34:25 +0000

We've previously discussed a variety of academic and political views on the costs and/or benefits of high frequency trading here on the Trading Gurus blog. If that type of thing is of interest to you as well then you might want to wander over to The Economist, where a "virtual debate" is currently taking place on the topic of "This house believes that high-frequency trading contributes to the overall quality of markets".

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MetaTrader5.com and MQL5.com Live At Last

Jim — Tue, 01 Dec 2009 16:59:07 +0000

MetaTrader 5 entered public beta testing quite some time ago now. For almost as long information about the product has been disseminated via the existing MetaTrader 4 web sites. Now MetaQuotes has finally got around to putting some content on a couple of MetaTrader 5 specific sites. MetaTrader5.com currently consists of a single page only, but it does at least provide a convenient location from which to download the latest beta version of MT5. The home page also displays the date when beta testing of the product is currently scheduled to end:

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GFT U-Turn on Offshore Hedging

Jim — Wed, 28 Oct 2009 19:10:16 +0000

As we reported back at the beginning of August forex broker GFT published on their website a document entitled "Get the Facts" which pointed out that their DealBook platform didn't require changing to comply with the recently introduced NFA hedging and FIFO rules. Amongst other things they stated then that:

Forex.com Promote Hedging in the UK

Jim — Fri, 10 Jul 2009 10:28:13 +0000

I received an email this morning from Forex.com promoting the benefits of opening a MetaTrader account with their FSA regulated UK operation. The headline read:

Total control of your trading strategies. – Don't let hedging restrictions affect how you trade your account.

When I clicked on it I didn't receive lots more information about how hedging restrictions might affect my trading. Instead I found myself looking at an online application to open an account at Forex.com UK

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FXDD Say No Hedging Doom and Gloom Highly Exaggerated

Jim — Wed, 08 Jul 2009 18:22:17 +0000

As we reported back in May, FXDD still allow "hedging" on their MetaTrader 4 accounts. Presumably they feel able to do this because their application to become a member of the NFA is still pending. The announcement that we linked to in our May article was removed from their website some time ago, but yesterday a new take on the NFA hedging ban appeared in its place:

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The Forex Hedging Ban – A Transatlantic Perspective

Jim — Wed, 03 Jun 2009 23:56:36 +0000

In the second of our series of interviews with senior figures from the Forex industry, I spoke earlier today with Marc Prosser, Chief Marketing Officer of Forex Capital Markets. I started off asking the question on everyone's lips these days about the new "hedging" ban. We then talked about the relative merits of "straight through processing" versus "dealing desk" business models, and then briefly touched on the regulatory aspects of transatlantic transfers of client cash.

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The Forex Hedging Ban – A UK Perspective

Jim — Fri, 22 May 2009 13:01:13 +0000

I've just put the phone down after a long conversation with George Tchetvertakov, head of market research at Alpari UK. We started off talking about the new NFA "hedging" regulations and their effects on the retail foreign exchange business. Eventually we moved on to discuss some other topics, including using hedging as a means of reducing risk, and George's opinions about markets in general.

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FOREX.com Promote Their UK Website

Jim — Sun, 17 May 2009 11:50:03 +0000

Gain Capital are another foreign exchange broker who are now promoting their MetaTrader platform through an FSA regulated UK company. Gain have long used the FOREX.com brand in the United States. According to the press releases section of their website:

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FXCM Promote FSA Regulated Entity

Jim — Sat, 16 May 2009 22:40:47 +0000

As zero hour approaches FXCM are taking a different approach to the NFA ban on hedging. If you go to their website today, and wait for a while the banner will change to promote their new UK based website.

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FXDD Still Allow Hedging?

Jim — Sat, 16 May 2009 21:25:11 +0000

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: