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

Executive Moves

CMC Markets taps Finalto’s Julia Free to head UK compliance

CMC Markets PLC (LSE:CMCX) has onboarded Julia Free as its newest head of UK compliance as part of a broader organizational reshuffling at the UK’s biggest spread better.

Digital Assets

Ankr successfully patches hack, will reimburse victims and take actions to prevent further attacks

DeFi protocol Ankr plans to reimburse its affected users after a hacker managed to exploit a bug in its code that allowed for unlimited minting of its liquid staking token.

Industry News

ASIC cancels/suspends AFS license of AFSL Group and Quantum Funds Management

ASIC canceled the AFS license of AFSL Group because it failed to lodge statements and audit reports and it did not maintain AFCA membership. The Australian regulator suspended Quantum because it does not have the required professional indemnity insurance coverage.

Executive Moves

BidX Markets hires Shaun French as Research Analyst – Multi Asset

“We believe with his background in the Financial Markets and being based in Dubai, he will be able to provide our clients with access to outstanding research, while also being in a great location to help support our international clients base which is growing at a rapid pace’’.

Institutional FX

Nasdaq migrates US options exchange to AWS with +10% performance in round-trip latency

Nasdaq has announced the successful migration of the core trading system of Nasdaq MRX – one of its six U.S. options exchanges – to Amazon Web Services (AWS).

Institutional FX

TraditionData launches oil swaps pricing data at a critical time in OTC oil traded markets

TraditionDATA has announced the release of a new proprietary Oil Swap Model (OSM) which brings further visibility into illiquid and opaque oil markets.

Technology

TNS connects to Tel Aviv Stock Exchange (TASE) as market data vendor

“This latest exchange connection allows TNS to provide access to approved recipients, including exchange members and market data vendors. This project includes market data for TASE’s equities and increases the number of market data feeds we now offer globally.”

Executive Moves

Cowen Digital taps ex-Blockchain.com Taylor S. Cable to lead Europe and Asia operation

“Cowen Digital is a pioneer in delivering institutional grade access to the digital asset ecosystem and I am very excited to join the team at this pivotal time to grow our presence in Europe and Asia.”

Industry News

ASIC sues American Express Australia for lack of TMD on credit cards

“ASIC has now taken multiple actions under the design and distribution regime, including issuing over 20 interim stop orders. This regime turned a new page in the regulation of financial products in Australia and is intended to deliver better outcomes for consumers. It is a priority for ASIC to maximize these increased protections and see the long-term benefits of the DDO regime realized.”

<