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Position System in MT5 vs. MT4

October 26, 2009 (Last updated on November 7, 2009) by

Two weeks have passed since the MetaTrader 5 public Beta version has been released. In MT5 a completely new order/position system is introduced; it doesn’t allow hedging and allows only one open position per currency pair per trading account. It simplifies the trading by removing the situations with more than one position on the same currency pair (such positions just eliminate each other if opened in opposite direction) and also saves trader’s balance from excess swap charges (usually swaps on the same pair in the opposite direction are negative in total). Of course, such system is extremely different from the one that millions traders got used to while trading on MetaTrader 4. With the new system you can’t just open any amount of position and manipulate them in a comfortable manner, instead you have to deal with one position and a lot of “virtual” pending orders. Even stop-loss and take-profit orders in most cases require creation of the separate pending orders that will partially close the existing position. I haven’t decided yet whether the new position system of MT5 is better or inferior to MT4 because it’s still a beta version and many things can change in the future. And how about you?

What is your opinion on a new position system in MetaTrader 5?

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Update: I’ve posted an exhaustive explanation of how the new MetaTrader 5 position system functions and how the same results can be achieved using the same trading system as in MetaTrader 4.

If you have some interesting comments or questions regarding the new position and order system of the MetaTrader 5 platform, please, feel free to reply using the form below.

3 Responses to “Position System in MT5 vs. MT4”

  1. Zdenek

    The issue with position-based trading introduced in MT5 isn’t the hedging which is now impossible but the fact, that I no longer can close specific parts (trades) of the position due to the FIFO mechanism dictated by NFA regulation rules (which currently apply for US-brokers only). With MT5 trading system I can’t open multiple trades and close them separately in the order I decided, which makes it impossible to keep good trades open as a swings or keep temporarily losing trades and take profits on trades opened meanwhile. Position-based FIFO trading is a heavy-limiting regulation: Why I should close losing trade if I DON’T WANT TO? My strategy is very low-risk and I need the freedom in decision of which part of the position I want to close and when. Without it, the MT5 is completely useless for me and I don’t understand why a russian private company created trading platform which is US NFA-compliant only, to be used by brokers and traders around the whole world, brokers that don’t adhere to the US NFA regulations and thus don’t have to force clients to close trades in in the order in which they were opened – it’s a nonsense no.1. That’s the main and single most serious issue with MT5. A large number of profitable traders apply multi-position trading strategies (some of them need hedging, some of them not) and those traders will be unable to trade with MT5 and will look for non-US brokers with platforms that allow trade-based trading. I know I will switch my broker once I will be forced to use MT5 and I know at least 20-30 other traders, that will do the same. This is very unfortunate step from Metaquotes side and I can only regret it.


    Andrei Reply:

    Please, see this commentary.


  2. Homon

    Mt5 is best for me.
    as wel as we have enouhg fund Mt5 is better than Mt4


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