MetaTrader 5 advances its hedging functionality

The MetaTrader 5 platform was originally designed for trading within the netting position accounting system. MetaQuotes has now added a new netting system to the platform which allows having only one position per financial instrument meaning that all further operations at that instrument lead only to closing, reversal or changing the volume of the already […]

MetaTrader 5 advances its hedging functionality

The MetaTrader 5 platform was originally designed for trading within the netting position accounting system.

MetaQuotes has now added a new netting system to the platform which allows having only one position per financial instrument meaning that all further operations at that instrument lead only to closing, reversal or changing the volume of the already existing position.

In order to expand the service available to retail Forex traders, MetaQuotes has added the second accounting system which is hedging. Now, it is possible to have multiple positions per symbol, including oppositely directed ones. According to MetaQuotes, this paves the way to implementing trading strategies based on the so-called “locking” — if the price moves against a trader, they can open a position in the opposite direction.

Since the new system is similar to the one used in MetaTrader 4, MetaQuotes considers that it will be familiar to traders.

Until now, MetaTrader 4 has remained the trading platform of choice among brokers which use the MetaQuotes system in many regions apart from Russia, where MetaTrader 5 has gained a degree of popularity. The MetaTrader 4 platform accounts for over half of all retail platform usage globally, and despite the MetaTrader 5 platform having been available for quite some years now, it has made very few steps toward replacing the original and favorite. With the new functionality, it could perhaps bridge the gap between familiarity and new features.

Capture

At the same time, traders will be able to use the functionality of MetaTrader 5’s fifth version which includes filling orders using multiple deals (including partial fills), multicurrency and multithreaded tester with support for MQL5 Cloud Network, and much more.

Now, traders can use one account to trade the markets that adhere to the netting system and allow having only one position per instrument, and use another account in the same platform to trade Forex and apply hedging.

Impact of the system selected

Depending on the position accounting system, some of the platform functions may have different behavior:

Stop Loss and Take Profit inheritance rules change.

To close a position in the netting system, you should perform an opposite trading operation for the same symbol and the same volume. To close a position in the hedging system, explicitly select the “Close Position” command in the context menu of the position.

A position cannot be reversed in the hedging system. In this case, the current position is closed and a new one with the remaining volume is opened. In the hedging system, a new condition for margin calculation is available — Hedged margin.

Capture 2

New trade operation type – Close By

The new trade operation type has been added for hedging accounts — closing a position by an opposite one. This operation allows closing two oppositely directed positions at a single symbol. If the opposite positions have different numbers of lots, only one order of the two remains open. Its volume will be equal to the difference of lots of the closed positions, while the position direction and open price will match (by volume) the greater of the closed positions.

Compared with a single closure of the two positions, the closing by an opposite position allows traders to save one spread: In case of a single closing, traders have to pay a spread twice: when closing a buy position at a lower price (Bid) and closing a sell position at a higher one (Ask). When using an opposite position, an open price of the second position is used to close the first one, while an open price of the first position is used to close the second one.

Read this next

Institutional FX

FX volume drops 13pct at CLS Group in April 2022

FX settlement specialist CLS Group today reported that the executed volumes of currency trading on its platforms were notably down in April.

Crypto Insider, Opinion

Regulation: The Gold-Standard for Crypto-Assets

When the US supervisory authority SEC allowed an investment product referencing Bitcoin futures to be traded for the first time last October, this was widely perceived as a signal that cryptocurrencies had finally become established as an asset class.

Executive Moves

Solid hires FX industry veteran Darren Barker for multi-bank ECN’s business development

His curriculum vitae includes former roles at Cantor Fitzgerald, Sucden Financial, R.J. O’Brien, Jefferies, Natixis, Unicredit, J.P. Morgan, Raiffeisen, RBS International, UBS, Deutsche Bank, and Citi. 

Inside View

Mihails Safro, xpate CEO: Tips sellers need to know to overcome compliance obstacles

The unprecedented growth of e-commerce changed shopping dramatically last year. Many sellers suddenly faced a rapidly growing number of customers who had to stay home during the lockdown. When some clients adopted Netflix and Spotify as part of a daily routine, others ventured into online business. Robinhood alone saw a whopping 6 million rise in user numbers in 2 months. 

Institutional FX

BMLL delivers Level 3 data to Kepler Cheuvreux for order book analytics and algo performance

The solution covers more than 6.5 years of harmonised historical data from 65 venues and combines it with easy to use APIs and analytics libraries in a secure cloud environment. 

Digital Assets

Crypto Is An Invaluable Tool In The Fight Against Financial Oppression  

Crypto has proven itself to be much more than just a hot investment. Indeed, some say it’s poised to play a critical role in the future of finance

Executive Moves

Parameta appoints Head of Benchmark and Indices with a focus on ESG and rates

The firm said building out its benchmarks & indices offering will now be a core priority, with a particular focus on the ESG and rates space.

Digital Assets

WunderTrading brings automated crypto trading to United States

“Among developed countries, Americans are the heaviest users of cryptocurrencies, with 13% having invested in cryptocurrencies over the past year.”

Retail FX

ACY Securities sponsors child safety and family welfare charity Barnardos Australia

Sponsoring Barnardos will give ACY Securities and its employees an opportunity to do volunteer work through different outreach programs.

<