Restrictions on Forex

On the Forex market has its own laws governing the interaction of market participants. Often, they are implemented following the dealing company or the financial regulators, carefully checking the trading strategy of each trader. Not everyone understands why the structure of the limit strategy, as each transaction will incur a fee. The point is that all the businesses have their documents in terms of trade, secured the highest financial institutions, the failure of which is fraught with consequences.


Before you start trading all traders get acquainted with the “User agreement” and other not less important documents. It was there that clearly spelled out the actions the performance of which is prohibited. Choosing a broker you need to study in detail the terms of the trade as your strategy may be strictly prohibited.


There is top to prohibited strategies in the CIS market, so let them take a look at:


1. Hedging


This strategy involves opening trades in one moment, but in different directions on one trading instrument (stock, currency pair, index, etc.). Why is it forbidden - it is not clear, most likely there's a correlation between what the trader is not able in any way to stumble, and always hits the bullseye.


2. Scalping


Reproduction strategy is considered the highest level of professionalism in trading, as it involves closing deals with minimal rates of return (often it takes up to several minutes). Basically, scalping is not prohibited, however, the majority of brokers regulate the trades by setting a time frame.


3. Swap


Not many know, but for the Islamists there are separate types of trading accounts, where no fee for the swap. Some traders register several accounts at one broker making transactions for currency pairs in different directions, where in the most risky direction. This enables traders to consistently make profitable income from the account without the swap. Dealing centers have a very negative attitude to such customers as they do not bring big profits.


4. Autotrading


In this strategy, all transactions are made special programs that make up a significant number of transactions during one business day. In most cases the programs put a limit on the number of transactions.


On completion, please note that the above strategies are not prohibited from each broker. However, we are advised to start trading only after chat with customer support and clarify all the nuances.

10 July, 2020

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