FXCM to Get Rid of Stops!
The following is from FXCM:
How are FXCM clients affected?
The result is that forex traders will no longer have the ability to place stop-loss or limit orders. Nor will traders be able to modify or close trades from the 'Open Positions" window. This major new rule will go into effect after July 31, 2009. Therefore, any existing stop-loss and limit orders will be removed from FXCM LLC accounts after July 31.
This means, your best bet is to start closing orders near the end of July and wait until this update rolls over. FXCM is again offering clients the chance to transfer their accounts to FXCM-UK to escape the regulation. I am personally starting to consider that option.
FXCM states that they are instituting a new type of order that should replace stops and limits called OCO.
This is all very interesting. Next week I might expect the headline “Government to regulate breathing”.
US Payrolls Decline Heavily
Well looking at these numbers, it’s a good thing that the government did stress tests for the banks. Come to think of it, it looks like we are now higher than the average of 8.9 percent. It seems that we are well on schedule to pass that 10.3 percent mark by 2010.
This is scary stuff. The most scary part being that the government is undershooting the seriousness of it so far.
So in case you work for the government, let me sum up with problem for you in one sentence.
Too much money being paid to too few people.
Perhaps if some of these company execs weren’t making 500 times what their employees made, that would be a start. They might have money left over to pay people to work.
It doesn’t look like things will be changing anytime soon. While the speed of the slowdown has decreased, the slowdown continues none the less. There really is no positive spinning that. There is a lot of bad news still waiting out there to be uncovered. I wouldn’t expect these employment reports to change any time soon.
Interest Rate Decisions Loom
The ECB will issue it’s interest rate decision for July this week, as well as the Bank of England next week. Do they really matter anymore? My answer is no. The BOE and ECB along with many other central banks have already cut interest rates to the bone. The only decision that would really make any waves in the markets would be a move towards raising interest rates. I don’t think we will be seeing that any time soon.
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The federal reserve continues to say the economy is bad, but not so bad that you should be worried. The fed will buy more treasuries and continue to try to stimulate things as much as possible. No rate hikes anytime in the near future (even though there should be).
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Forex Lot Sizes
Choosing a lot size to trade is an important decision. If you are a realist and not a gambler, it should be easy.
However, there are things to consider and whether you plan to trade the smallest lot size possible, you should understand the differences between lot sizes.
I’ve put together a quick tutorial on choosing a lot size.
More Power for the Fed
Obama’s new reform plan suggests that the Federal Reserve be designated as a financial “super regulator”.
I would pose the question, should we really be giving the fed more powers than it already has? Read more...
The Future of the US Dollar
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