NFA Compliance Rule 2-43(b) (FIFO rule)
Brief
Description of the actual NFA Compliance Rule 2-43(b)
Details
This compliance rule affects ALL United States based accounts.
Close, Stop and Limit orders on individual trades for all United States based accounts are not functional as they are not compliant with the National Futures Association (NFA) Compliance Rule 2-43 (b).
Compliance Rule 2-43(b) requires that for all Unites States based accounts orders be executed First In, First Out (FIFO). FIFO requires that when multiple positions are held in the same currency pair, the position which was first opened will be the first to be closed. This will prevent stop-loss and limit orders from being placed on individual tickets (orders and positions) through ForexConnect API.
Read full description on NFA's website: NFA WEBSITE
Since stop, limit and close orders are disabled for FIFO accounts, the special approach is required to handle risk management on FIFO accounts. Please read the articles about risk management on FIFO accounts.
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Using Net Orders for FIFO accounts The article describes how to handle risk management using net orders on FIFO accounts |
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Using ELS Orders for FIFO accounts The article describes how to handle risk management using ELS orders on FIFO accounts |