Forex managed accounts and hedge funds typically provide specific redemption frequencies, such as monthly, quarterly, and yearly. They may also require a particular notice period, such as 60, 90, or 180-days. In addition, some Forex managed account programs and hedge funds can stop redemptions once they exceed a certain percentage of the total assets under management in the program. Most Forex manager account programs and hedge funds disclosure documents contain language to the effect that the trading manager may suspend withdrawals if those redemptions put the remaining investors in an unfair position. Trading managers often “lock up” investor’s capital for some time upon the initial investment. These lock-up periods can be “hard,” meaning the investor cannot take any of his money out, or “soft,” meaning the investor can take a percentage of his total assets under management out of the fund or managed account program.

Redemption provisions are an essential part of a Forex managed account program. It important for the investor to read the Forex funds or managed account program’s disclosure documents so he is not surprised when he attempts to withdraw his funds from the trading account.