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Q. If I can't place stop-loss and limit orders, how am I expected to manage the risk of my positions?
A. Stops and limits are essentially two entry orders that are linked to an individual open position. If a stop-loss or limit order is triggered the other is canceled. FXCM has introduced a new feature called OCO (One Cancels the Other) entry orders, which will provide the same functionality that can serve as stop-loss and limit orders except that they are not linked to any positions.
For example, if you bought GBPUSD at 1.4700 and wanted to take profits one hundred pips above and cut your losses one hundred pips below you would simply need to place two entry orders to sell at 1.4800 and 1.4600. You would then link the two orders as OCO so that if one order triggered, the other would automatically be canceled. This would prevent you from entering into a position that you did not intend if the price action were to reverse.
http://www.nfa.futures.org/news/PDF/...Notc021909.pdfNotice of Leverage Reduction Proposal:
The NFA has recently requested that the Commodity Futures Trading Commission (CFTC) approve another rule proposal that would place additional restrictions on the margin (leverage) levels that FDMs can offer to forex customers. If the CFTC approves this proposed rule, FDMs will be restricted from offering more than 100:1 leverage on major currency pairs and will be limited to 25:1 leverage on non-majors. NFA has proposed this rule because it is “concerned that higher leverage amounts can deplete a customer’s account balance—and result in forced liquidation—much faster than retail customers realize.” Again, CFTC has not yet approved this rule proposal, and there is not yet a specific date for when it would take effect. For more information, please visit: