hunting forecast
Regulators are hunting in the States, are users of Forex Robot in trouble?
Forex trading has exploded in popularity recently, and is due to the proliferation of technology that has made the currency markets more accessible to retailers. Until recently, the Forex market has been well regulated, especially compared to asset classes like stocks, options and commodities.
In other words, the current regulation facing retailers based in foreign currencies are dangerous to their bottom lines, almost to the point that it seems that regulators are not really on the side of the most helpless. In fact, some recent regulations that have arrived in the States could have a negative impact on the use of forex robots. Many traders have grown love their robots and have used foreign currency robots to grow their accounts, so these rules would endanger U.S. traders using forex robots as part of an overall foreign trade.
There are options for retailers in the U.S., but the rules are going to be too much to overcome? Let's take a look.
Regulators are to hunt
A great idea that U.S. regulators have arrived recently, and no, I do not think that is really a great idea, is to prevent only Retail traders coverage. Meaning of U.S. retailers they can not go long and short sell the same currency pair at the same time. This is rather unfortunate because this is a great strategy to use because it can keep the risk to a minimum, while hunting big moves. Not to mention this strategy is easy to use with a Forex robot, but U.S. regulators have said no coverage.
National Futures Association (NFA) is behind this idea and would simply appear not worry about retailers. It also seems to have little respect for the robotic currency due to the NFA has said in essence that good traders it is not necessary for protection.
Unintentional Consequences
One unfortunate aspect of regulation cold weather in the U.S. has been the disappearing act performed by many target = "_blank" title = "Forex Brokers" Forex Brokers>. A lot of forex brokers have left the U.S. market due to costs associated with compliance with new regulations. What he has done is give the market share dominant major corridors such as FXCM and GFT and left U.S. dealers with fewer options. That means there are fewer places to park the robot currency and is not good thing.
At this point, the regulatory framework in the U.S. can not be considered anything but hostile to the merchants and we like to say that the prognosis was color rose to forex robots States, but it just is not.
About the Author
Retired Canadian Economist. My main activity since Winter 2006 is trading Forex. I’ve been trading currencies online with the help of EA’s (BTW, the best source for EAs is www.forex-robots.com ) and I currently manage trading accounts at two Forex brokers in the US and in UK respectively
Hunting Forecast Fall 2010 – Texas Parks and Wildlife [Official]
