metatrader 5 hedging mode

[hayseed]

really not fond of asking questions until i've spent days searching for the answer.....

will metatrader 5 hedging mode apply to futures also..... it does for sure work with forex pairs....

but my question is about futures.....

in other words, buy a YM_U contract and sell a YM_U contract...... directly opposite orders in a single account at the same time....

this can be done for the EURUSD..... but what about a futures contract, 6A_U......

of course i've googled it to death and sent in a help ticket asking the same question..... no response.....

downloaded a mq5 demo hedge enabled but it does not come with futures symbols.....

does any one know the answer...... thanks......h

 

[hayseed]

really not fond of asking questions until i've spent days searching for the answer.....

//----

got the word.....

even though mq5 has a hedge mode, and darwins accounts are in hedge mode, hedging futures is not allowed for anyone....

regardless of where you live......h

 

[Ethan.ishere]

//----

got the word.....

even though mq5 has a hedge mode, and darwins accounts are in hedge mode, hedging futures is not allowed for anyone....

regardless of where you live......h

So why would it have anything to do with where you live exactly?

 

[Enivid]

So why would it have anything to do with where you live exactly?

That's not allowed because of the US FIFO regulation. Normally, it would apply to traders from the USA only, but since those futures aren't CFD but actual contracts traded on the regulated exchange, they restrict hedging for everyone. That's how I understand that.

 

[hayseed]

So why would it have anything to do with where you live exactly?

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hey ethan..... i probably should have been more clear on that.....

like enivid said, here in the states we have a few rules that some countries might not..... first being the fifo rule, second being the no direct like for like hedge rule and last , no trading cfd's....

some brokers find ways around those rules and allow us, in the states, to trade without those restrictions.....

in this case, darwin is my broker ....... using darwin you can not hedge like for like futures contracts no matter where you live..... email reply from them below.....

the absolute best person to ask would have been Renat Fatkhullin himself.... just in case there is a global restriction in the metatrader 5 platform..... but he is not all that accessible to us..... next in line would be enivid, here on this forum.....

my question here was a result of someone posting on another forum implying he was hedging like for like...... when i asked how, there was no reply..... which is answer enough......

after days of searching, sent my question to darwin themselves..... they replied......

but i'm not done researching this.......h
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''''

Thank you for your message and letting us know about your question.


I am sorry to tell you that, although it is a Hedge acccount, you cannot Hedge futures in a Darwinex Zero futures account.


Please, let us know if there is anything else we can help you with, we will be back to you as soon as possible.


Kind regards,

Luis

''''''

 

[Ethan.ishere]

That's not allowed because of the US FIFO regulation. Normally, it would apply to traders from the USA only, but since those futures aren't CFD but actual contracts traded on the regulated exchange, they restrict hedging for everyone. That's how I understand that.

Ah yes, the first in first out rule, I have heard about it but I am not from there so didn't really care, very interesting. I appreciate the explanation. But I just do not find it very amusing that they keep making this complicated market more complicated with these rules in the US and the UK.

 

[Ethan.ishere]

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hey ethan..... i probably should have been more clear on that.....

like enivid said, here in the states we have a few rules that some countries might not..... first being the fifo rule, second being the no direct like for like hedge rule and last , no trading cfd's....

some brokers find ways around those rules and allow us, in the states, to trade without those restrictions.....

in this case, darwin is my broker ....... using darwin you can not hedge like for like futures contracts no matter where you live..... email reply from them below.....

the absolute best person to ask would have been Renat Fatkhullin himself.... just in case there is a global restriction in the metatrader 5 platform..... but he is not all that accessible to us..... next in line would be enivid, here on this forum.....

my question here was a result of someone posting on another forum implying he was hedging like for like...... when i asked how, there was no reply..... which is answer enough......

after days of searching, sent my question to darwin themselves..... they replied......

but i'm not done researching this.......h
//------

''''

Thank you for your message and letting us know about your question.


I am sorry to tell you that, although it is a Hedge acccount, you cannot Hedge futures in a Darwinex Zero futures account.


Please, let us know if there is anything else we can help you with, we will be back to you as soon as possible.


Kind regards,

Luis

''''''

Now I understand, thank you for taking the time to reply in detail. Well, they have to comply with the regulations so this is not very surprising. Maybe there is another account type that they offer for that. Sorry if I am not making any sense though.

 

[hayseed]

Now I understand, thank you for taking the time to reply in detail. Well, they have to comply with the regulations so this is not very surprising. Maybe there is another account type that they offer for that. Sorry if I am not making any sense though.

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hey ethan..... to me, sensible well founded regulation aimed at overall public's financial safety seems to be a necessary thing.....

a good example would nfa's minimum asset requirement for various type brokers..... or it's minimum security deposit for commercial forex dealers......... and of course the know your customer requirement...... money laundering requirements and such,,,,,

but fifo and the no hedge are neither well founded or for the publics financial safety..... quite the opposite...... i can't even begin to understand nfa's thought process of arriving at those conclusions......

they both should be abolished today...... and if you look "deep" enough you see my reasons......

even though i seldom say anything on either those subjects, i might be the worlds most silent outspoken opponent......

no one can imagine how happy i was when metaquotes came out with the hedging mode option...... it was like my views were suddenly vindicated by a higher power......

ask yourself why would metaquotes create a such an option........

in my mind, they must have looked "deep".......h

 

[Ethan.ishere]

Hmmm what that sounds to me, is that there is a big free for all going on in the US in terms of trading and regulations and restrictions.