Here is an interesting article on Daily Forex.com
If you are even remotely involved in the Forex market, you have most likely heard of the new NFA First in First Out (FIFO) rule. It is the most talked about topic in the online and offline Forex worlds.
First let’s give a little background as to what exactly this ruling is, then we can discuss how it will affect the Forex market. The NFA ruled that as of August 2nd, 2009, when a trader opens more than one position in the same currency (for hedging purposes for example, but we will talk about that later), the trader must then close the positions in the order they were opened. If he/she opened a trade for $100,000 in the EUR/USD currency for example, then continued to open other positions in the EUR/USD currency, that first position needs to be closed before any subsequent positions he/she opened are closed.
There are many differing opinions circulating as to whether this is a positive or negative ruling when it comes to Forex brokers and traders, but one thing is for sure, it will drastically change the Forex game.
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