Currency hedging in MetaTrader 5 app
The powerful MetaTrader 5 trading system for iPhone/iPad and Android supports the two position accounting systems: the netting one is usually used in exchange markets, while the hedging one is popular on Forex. The netting system allows you to have only one resulting position on a single stock or a future. All further operations on the same financial instrument will modify its volume or will close it.
The hedging system allows you to have multiple trading positions on a single currency pair, including oppositely directed ones. If you perform a new deal on a Forex symbol with already existing open position, a new position is opened.
The hedging system features a special type of trading operations with currency – closing a position by an opposite one. It allows you to simultaneously close two oppositely directed positions on a single currency pair. If the opposite positions have different numbers of lots, only one order of the two remains open. Its direction, volume, and open price match (by volume) the greater of the closed positions.
To be able to open oppositely directed Forex deals, create a new hedging account directly in MetaTrader 5. A hedging account will allow you to open market and pending orders as separate positions for any currency, set Stop Loss and Take Profit levels, and view the profit for each position. The platform opens netting accounts by default.
The hedging system greatly simplifies trading Forex in MetaTrader 5. Open a new hedging account and try it yourself!