MetaTrader 5 Trading System

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The trading system in MetaTrader 5 differs from that of MetaTrader 4 in its basics. First of all, four types of trade operation execution are supported in MetaTrader 5: Market, Instant, Request and Exchange. Secondly, the new terminal accepts the strict delimitation between the notions of Order, Trade and Position.

  • Order. This is the direction to a brokerage company to buy or sell a financial security. There are two major types of orders: market and pending. Two more special orders are available in the new terminal - Take Profit and Stop Loss.
  • Trade. It`s the fact of security buying or selling. A Buy is performed at the Ask price, while Sell is done at the Bid price. A trade can be opened as the result of market order execution or pending order activation.
  • Position. It`s a market obligation, number of bought or sold security contracts. A long position is a symbol bought expecting the security price raise. A short position is the obligation to supply it expecting the further price fall. Only one position for a certain security can exist on a trade account.


Differences between trade positions in MetaTrader 4 and MetaTrader 5

Besides the Buy and Sell market orders, 6 types of pending orders are supported:

  • Buy Limit is a trade Buy order at the Ask price equal to or better than that indicated in the order. Usually orders of this type are placed expecting that the symbol price falls till a certain level and starts raising then.
  • Buy Stop is a trade Buy order at the Ask price equal to or better than that indicated in the orders are placed when a security price us expected to get over a certain level and continue growing.
  • Sell Limit is a trade order to sell at the Bid price that is equal to or better than that indicated in the order. In this case a security price is expected to raise till a certain level and go downwards after that.
  • Sell Stop is a trade order to sell at the Bid price that is equal to or better than that indicated in the order. The current price level is above the value indicated in the order. Usually such orders are placed when a security is expected to fall down to a certain level and continue the downward moving.
  • Buy Stop Limit - this type of orders is the combination of the first two types being a stop order for placing a Buy Limit order. As soon as the Ask price reaches the specified value, a Buy Limit order will be placed at the level indicated in the order. The current price level is lower than that, reaching which a pending order will be set.
  • Sell Stop Limit - this type is the stop order to place a Sell Limit order. As soon as the future Bid price reaches the value specified in the order, a Sell Limit will be placed for the level indicated in the order. Here the current price level is above the value, reaching which a pending order will be placed. The price of the pending order is above the level of its placing.


Pending Orders in MetaTrader 5 Client Terminal

All these possibilities enable you to flexibly control all trading activities and implement almost any trading strategy.

How Does It Work?

An order to execute a trade with indicated parameters is sent to a broker from the client terminal. The order correctness is checked on the server. Are all the parameters (balance, lot, price, etc.) indicated correctly? If any of parameters does not meet the requirements, the order is rejected. If everything is correct, a trade order is placed to the Order Queue, after which it is sent to a dealer or to the market. An order can be also rejected in the market (stock exchange) or by the dealer.


Trading operations Execution in MetaTrader 5

An order turns into a trade if all its parameters are correct and it has been executed in the market. Depending on the current position for the security, the trade can result in the position increase, decrease or closing.

Example: we've got one position for EURUSD 1 Lot. If another lot is bought, the position will be increased to 2 lots. If 1 lot is sold, the position will be closed. If 0.7 lots are sold, the position will diminish to 0.3 lots.

Fill Policy

Besides common order execution rules set by a broker, trade operation execution policies can be set in MetaTrader 5. These policies allow making trading activities more flexible and setting strict parameters to manage the execution of trade operations.


MetaTrader 5 Fill Policy

  • All or None
    With this condition, a trade can be executed only for the indicated volume and at the price equal to or better than that indicated in the order. If the enough security volume is currently unavailable in the market, the order won't be executed.
  • Cancel Remains
    In this case a trader agrees to have a trade executed for the volume maximally available in the market within the volume specified in the order and at the price equal to or better than that indicated in the order. No additional orders are placed for the deficient volume.
  • Return
    In this case a trader agrees to have a trade executed for the volume maximally available in the market within that specified in the order and at the price equal to or better than that indicated in the order. Besides, an additional order is placed for the deficient volume at the price indicated in the order.
 
Some screens please
 
some beta plz!
 

Why not also Buy Limit Stop  and  Sell Limit Stop  ? The trigger would be lower for Buy Stop Limit and higher for Sell Stop Limit.


I have to address however that these differences between pending orders haven't been done too well in MT4 too. For instance, I always used a function that was picking the order type (Limit or Stop) given its main direction (Buy or Sell), price to place as pending order, and current market price.

In my view, pending orders should be of two basic categories:

1. MIT orders - Market if Touched - Place a Buy or a Sell pending that become effective when touched - no distinction between limit or stop

2. EVENT orders - Place an MIT if event price is touched (no matter if event price is higher or lower than current market price, does not have anything to do if the order is Buy or Sell, as the current Buy Stop Limit and Sell Stop Limit are limited)

That would give a maximum amount of 4 effective types that would cover more than the current 6 types .

 
TheEconomist:

In my view, pending orders should be of two basic categories: [...]

One of the key reasons for building MT5 was to move into equity and futures trading. At least in those areas, Metaquotes are constrained by the order types and fill-rules provided by the equities and futures exchanges. They can't just unilaterally make this stuff up themselves.

 

Lenar,


Could you please clarify the following?

I wonder how orders will be managed by MT5's trading system:

Suppose my EA will send 3 Buystop orders (at different price level), each order has its own StopLoss and Takeprofit, and unique magicNumber, if all of these 3 orders be activated, then, according to MT5, these 3 trades will merge to form 1 position, now, I want to know, what's the StopLoss and Takeprofit of the present POSITION? which MagicNumder or no such thing at all? Furthermore, if the EA then sends out a Sellstop oder, same thing, with its own StopLoss and Takeprofit, and unique magicNumber, what's the net resulting position's StopLoss and Takeprofit?


What's the advantage of adopting the NEW MT5 trading system instead of the old MT4 system? Is it really necessary to discard the old one (I mean only the order vs position stuff)?


Thanks.

 
Is this MT5 also supporting the hedge orders like MT4? IN MT4 you can open both sell and buy orders at the same time and be flat on the market. Is this hedging feature supported anymore ?
 
Why hedging is prohibited in MT5? It is the only way to make profit.
 
It would be better to bypass this merging orders feature, otherwise you will lose customer.
 
barisyildiz1982:
Why hedging is prohibited in MT5? It is the only way to make profit.


    Without this hedging feature the MT5 flaform is completely worthless to me. I think that if MT4 will no longer supported I had to start looking for a new profession. After a very hard work my career as forex trader will end soon.
 
zenoni wrote >>

Without this hedging feature the MT5 flaform is completely worthless to me. I think that if MT4 will no longer supported I had to start looking for a new profession. After a very hard work my career as forex trader will end soon.

Yeah this is beyond stupidity, I just transferred my account to the UK to avoid the US hedging restrictions and now they do this.

BTW

So what happens if you add to a position, with 5 digit pricing it will almost certainly be a different price, so do you have a blended position?

So If the initiatial position was well in the money and well protected by a stop at a strong R or S level

and you open a larger second position, your price now gets lowered/raised much closer to the danger of market volatility!!!!

These guys can't think past the end of their noses and yeah why trade with MT5 just go back to using a non-USA brokers platform

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