MetaTrader 5 Trading System - page 3
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I think US's Brokers (except those which have an offshore licence) and MetaTrader will loose big money because brokers don't pay a lot of money to get a plateform which will not be used... That is the end word !
really, are you an US broker?:)))
I think US's Brokers (except those which have an offshore licence) and MetaTrader will loose big money because brokers don't pay a lot of money to get a plateform which will not be used... That is the end word !
Well, we all know US Brokers are in very big s***t ! MT4 or MT5, none of them will give back the "hedging" as it was. At least MT5 will make operation smoother without the ERR_TRADE_HEDGE_PROHIBITED .
But it will look really bad when european and russian brokers will include "the real stuff". Happened in the past with CFDs emulating futures on MT4. But when options will join the game on MT5, and the fx communities aroud the globe will talk about strategies that were never done with the old fx platforms, and most likely will never be done in the future with US brokers, things will really start looking like hell - perhaps lower latency will be the last candy promised by small US brokers in an effort to attract last customers before shutting down. Big brokers will just shut down the forex divisions. They will have the remainder divisions focusing on equities, futures and options (on futures and equities). If MT5 will adapt, its future with US brokers will be the one of an equities, futures & options platform, shadowing Ninja Trader, RAN Order and Strategy Runner; regular, old style fx trading will get oldfashioned.
HEDGE is not necessary to earn money!
MT5 will be a great plataform!!!!!
Maybe not necessary....but a damn good tool!
Maybe not necessary....but a damn good tool!
I really don't understand.
Why to be HEDGED is different of to have zero positions opened?
I really don't understand.
Why to be HEDGED is different of to have zero positions opened?
I, also, can find no difference according to the dollars and cents. However, I think there are two reasons people like it...
1. I think some people find it easier/better to think of one winning position + one losing position, then they can choose their times to exit each with profit. Financially there is no difference to exiting the original position and following with compensating trades.
2. It makes it easier to trade the same instrument on different timeframes. For example, you can open and close positions on a fast timeframe without having to confuse your thinking by accounting for positions based a slower timeframe.
I also think MT5 will be a great platform. Looking forward to it.
Cheers
Jellybean
I, also, can find no difference according to the dollars and cents. However, I think there are two reasons people like it...
1. I think some people find it easier/better to think of one winning position + one losing position, then they can choose their times to exit each with profit. Financially there is no difference to exiting the original position and following with compensating trades.
2. It makes it easier to trade the same instrument on different timeframes. For example, you can open and close positions on a fast timeframe without having to confuse your thinking by accounting for positions based a slower timeframe.
I also think MT5 will be a great platform. Looking forward to it.
Cheers
Jellybean
am i wrong but when you buy you paid spread, and when you go short you paid spread too.
Now, with the concept of position instead of order, the broker received only the spread one time (you go long for 3 lot, you short 2 then are are long on 1 lot but did not cost anything in spread for the 2 lot short ?!?)
am i wrong but when you buy you paid spread, and when you go short you paid spread too.
Now, with the concept of position instead of order, the broker received only the spread one time (you go long for 3 lot, you short 2 then are are long on 1 lot but did not cost anything in spread for the 2 lot short ?!?)
Hi Gachette
There was quite a discussion about hedging in the following thread. Try reading from 'MetaTrader 5 Client Terminal'. I still think that financially there is no difference.
Cheers
Jellybean
am i wrong but when you buy you paid spread, and when you go short you paid spread too.
Now, with the concept of position instead of order, the broker received only the spread one time (you go long for 3 lot, you short 2 then are are long on 1 lot but did not cost anything in spread for the 2 lot short ?!?)
Hmm... Let's think about: EURUSD quotes 1.3000/01, buy 3 lots @ 1.3001 ... Later, quotes 1.3500/01, sell 2 lots @ 1.3500 ;
first trade has one pip spread cost : if you think 2 pips, think again : if you buy @ 1.3001 then turn around and sell @ 1.3000, it is really one pip -> closed position had 2 lots, so $2 cost...
now you are long 1 lots
sell 1 lots when 1.3600/01, @ 1.3600 -> closed position had 1 lots, so $1 cost...
So we can summarize that when opening a position, we have a floating spread cost, like in MT4. When a part of existing position is offset by an opposite trade, for this part the spread cost becomes final, but it remains floating for the remainder position.
Now it really depends how you understand this translated to MT4:
a) Exact mimic
Buy 3 lots, close 2 lots, later close one lot -> same results in account equity and spread cost.
b) Hedge
Buy 3 lots, sell 2 lots, sell 1 lot ;
Close all later.
Total cost is $3+$2+$1 = $6
Quite strange, equity would have moved the same, but to achieve the same trade result, you traded 6 lots - you payed 6 pips total cost. However the exact mimic has a linear path, while the hedge would have given you possibilities to close each trade in a different spot.