MT4 Hedging Broker | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

NEED: Hedging available MT4 broker 8 replies

Need a 5 decimal 500:1 MICRO mt4 broker who is happy with scalping/hedging/ea clients 21 replies

Please recommend me a non-USA hedging MT4 broker 40 replies

Phase out hedging: Alternative to NFA broker 0 replies

Looking for new forex hedging broker 2 replies

MT4 Hedging Broker

  • #1
  • First Post: Apr 26, 2012 2:35am Apr 26, 2012 2:35am
http://www.pfgbestdirect.net/blog/bi...ading-Platform

MT4 Hedging

PFGBEST will now allow forex traders platform hedging capability on the MT4. Clients will be allowed to carry offsetting positions on the platform, while continuing to offset in a First-In, First-Out (FIFO) manner via BARS. NFA has approved for PFGBEST to do so, to solve any limitations that had existed for ExpertAdvisors and other automated systems. To compensate for differing pip values when converting P/L, daily balance updates will be done to the platform to keep balances in line.
  • #2
  • Apr 26, 2012 5:38am Apr 26, 2012 5:38am
Wow, guess the GUV-MINT realized they were destroying a domestic industry. I'll stick with trading point.

Quoting PoundTrader
http://www.pfgbestdirect.net/blog/bi...ading-Platform

MT4 Hedging

PFGBEST will now allow forex traders platform hedging capability on the MT4. Clients will be allowed to carry offsetting positions on the platform, while continuing to offset in a First-In, First-Out (FIFO) manner via BARS. NFA has approved for PFGBEST to do so, to solve any limitations that had existed for ExpertAdvisors and other automated systems. To compensate for differing pip values when converting P/L, daily balance...
Skype: heliosphan187
  • #3
  • Apr 26, 2012 6:57am Apr 26, 2012 6:57am
how can this be
  • #4
  • Apr 26, 2012 7:42am Apr 26, 2012 7:42am
Ugg.. sounds like they're just getting around it by doing some accounting in the backoffice..

NFA hasn't approved "hedging" in general, just the method that PFG is shifting positions to appear net flat to the client.

I still feel that hedging doesn't matter, I am able to hedge at my broker and I asked if they can turn it off.. I'd rather think of positions in terms of exposure, and not give the broker a chance to churn more volume.
FXGears.com
  • #5
  • Apr 26, 2012 9:32am Apr 26, 2012 9:32am
Quoting Jack_Larkin
Ugg.. sounds like they're just getting around it by doing some accounting in the backoffice..

NFA hasn't approved "hedging" in general, just the method that PFG is shifting positions to appear net flat to the client.

I still feel that hedging doesn't matter, I am able to hedge at my broker and I asked if they can turn it off.. I'd rather think of positions in terms of exposure, and not give the broker a chance to churn more volume.
kind of strange for NFA to approve pfg for hedging, this is what they say.
  • #6
  • Apr 26, 2012 9:34am Apr 26, 2012 9:34am
I'd assume it's something similar to what other NFA regulated brokers are offering - Netting (i.e. FXDD, ILQ, ATC Brokers).

ATC has a fairly good definition of netting:
In order to abide by the CFTC no hedging rule, the counter party offsets the positions as they receive the orders. When orders are placed on the MetaTrader 4 platform, the hedging features is remained available. For example, if you buy and sell a contract on the MT4 software, you will notice your positions are hedged on the interface, however, the orders that have been sent to the counter party have been offset with each other. Your net position remains the same on the MT4 and the back office. When you close your hedge positions on the MT4 software, the new buy and sell orders placed will be offset with each other by the counter party and again your net positions on the MT4 and the back office remain the same.
  • #7
  • Apr 26, 2012 9:39am Apr 26, 2012 9:39am
Quoting Forex2k10
I'd assume it's something similar to what other NFA regulated brokers are offering - Netting (i.e. FXDD, ILQ, ATC Brokers).

ATC has a fairly good definition of netting:
[i]In order to abide by the CFTC no hedging rule, the counter party offsets the positions as they receive the orders. When orders are placed on the MetaTrader 4 platform, the hedging features is remained available. For example, if you buy and sell a contract on the MT4 software, you will notice your positions are hedged on the interface, however, the orders that have been sent...
are you saying your really not hedging?
  • #8
  • Last Post: Apr 26, 2012 9:50am Apr 26, 2012 9:50am
To the client (you or I) it looks like hedging, heck, it IS hedging on the MT4 platform. I'm not an expert on the topic, it was explained to me that the only difference is for the broker in the backoffice, when they take our trades THEY still need to abide by FIFO/hedging regulation and do so. It essentially "aggregates" those positions you've placed. So for example, say you're long 1.0 (a full lot) EUR/USD, you then open a short 0.5 lot position on the EUR/USD - after netting to the broker it looks like you're only long 0.5 lots EUR/USD in one position. While to you on your MT4 platform you see 2 hedged positions.

A number of US brokers are looking into ways to offer this to clients. With Dodd-Frank, FIFO/Hedging being outlawed you can imagine that volume would and has decreased. FXDD, ILQ, ATC Broker, now PFG Best are all offering netting by default. At Alpari-US you can request to have netting enabled on your account (more info: http://www.alpari-us.com/en/faq/netting.html)
0 traders viewing now