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3 Ways MetaTrader 5 Has Improved On MetaTrader 4

by with No Comment Forex

How can you take something beloved by a global community and make it better? With MetaTrader4, MetaQuotes built a trading platform that has become the standard of retail forex traders around the world.

With the global trading community demanding more customization, greater control, and more capabilities, MetaTrader have gone one better and created a next-generation platform called MetaTrader 5.  

Available with Exness on Demo accounts, we wanted to give you a sneak peek at the features that make MetaTrader 5 special.

Customizable Approach To Trading: New Features In MT5

There’s nothing more frustrating than not being able to get your chart set up the way you want it, or not being able to place your order exactly the way you want it to be placed.

With MT5 a lot of these frustrations have been eliminated.

Timeframes. MetaTrader 5 offers 21 different timeframes, vs just nine in MetaTrader 4. This means you can get exactly the right chart for your trading strategy, rather than having to make do on MetaTrader 4.

Order types. In MetaTrader 5, you can access two additional pending order types, “buy stop limit” and “sell stop limit”. You can find out more about these in our blog post specifically on the subject of pending order types.

What’s more, with MetaTrader 5 subtle changes in the “navigator” pane mean that you can find what you want, when you want, at a far greater speed.

Analysis

The changes to MetaTrader 5 go beyond simple user experience. Improvements to analytics, testing, and tool building demonstrate how much MetaTrader 5 has been created with the experienced trader in mind.

Fundamental analysis. With MetaTrader 5, traders can benefit from access to economic and industrial news right within their terminal, as well as enjoying a economic calendar highlighting upcoming announcements from around the world. These new tools come bundled with MetaTrader 5 right from launch.Technical analysis. With MetaTrader 5, right out of the box traders get access to 38 indicators and 44 analytical objects, versus 30 indicators and 33 analytical objects in MT4, with a vast number of additional solutions available for free via Code Base or for a price from the new Market feature.

Expert Advisors

EAs were always remarkably valuable in MT4 because they allowed traders to automate some or all of their decision-making to a complex algorithm that could analyse trends and place orders.

In MT5 this functionality is further increased, made possible by the highly advanced MQL5 programming language.

Programming. MT5 is designed from the ground up to empower experienced traders to build powerful EAs themselves. With a programming language similar to C++, it is easy for traders to get their heads around the process and start building. At the same time, less experienced will benefit from access to better quality EAs, which they can test and apply.Market. Even more exciting for experienced traders is the new Market feature, which allows traders who have programmed EAs themselves to make money by selling them to the community, right from the terminal.

Using MetaTrader 5 With Exness

It couldn’t be easier to try out the MetaTrader 5 platform for yourself with Exness. Here’s a simple guide the getting started:

Open an MetaTrader 5 trial or MetaTrader 5 real account from your Personal AreaDownload the MetaTrader 5 desktop or mobile terminal from the Exness downloads pageEnter your account details to log in

What’s more, MT5 accounts can now be used with the WebTerminal. Accessible right from your personal area in the left-hand menu, this means you can start trading on MetaTrader 5 without anything to download!

Try it for yourself.

Open an EXNESS MT5 account today.

Open an FXTM MT5 account today.

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How To Reduce Forex Risk Through Hedging

by with No Comment Forex

Author:GoldenRebate Team

Hedging is a common strategy used by forex traders to limit the risks associated with some of their trades. Forex hedging strategies rely on positions opened by a trader in order to reduce their overall exposure to changes in prices of a given currency pair.

To make hedging more effective, combine it with technical tools — learn how in our guide on How to Use the RSI Indicator in Forex Trading.

Although hedging strategies are usually employed to limit a trader’s risk, it is important to incorporate technical and fundamental analysis within any hedging strategy in order to make it effective. The best forex hedging strategies limit risk, but also take a cut of your profits. You can think of this as taking an insurance premium on your positions.

Hedgers Vs. Speculators A hedger’s primary motivation is to reduce the risks associated with price movements in the instruments they trade. On the other hand, a speculator takes positions in a given market with the primary motivation of making a profit from future price movements.

Hedging is largely a way of buying insurance against price movements that do not favor your current and future positions. As we’ll see, forex traders also use hedging as a way to generate potential profits.

Before applying any hedging strategy, make sure you have a solid Forex Trading Plan in place to manage your risk consistently.

Achieving Market-Neutral Positions Achieving market-neutral positions through hedging usually involves identifying two currency pairs that are positively correlated, and initiating opposite trades in each of the currency pairs. Examples of positively correlated currency pairs include the EURUSD and GBPUSD, as well as the AUDUSD and the NZDUSD.

The most important aspect of hedging is to choose two correlated pairs that move somewhat asymmetrically to each other. For example, when trading the AUDUSD and NZDUSD currency pairs, you take opposite positions across the two pairs as a hedging strategy. In this instance, as the NZD is a less volatile currency, you have to compensate with a larger trade size as compared to the opposite AUD trade.

A Word Of Caution There are some retail traders who use hedging strategies to minimize existing loses on a losing trade. For example, if a trader has entered into a losing EURUSD long trade, they might decide to open a short EURJPY trade in order to mitigate their losses by booking some gains from the short trade.However, opening a hedging trade to minimize the losses from a losing trade is very risky given that such a trader could ends up compounding the risks associated with their trades. In the above example, by opening a EURJPY short trade, the trader is now exposed to fluctuations in JPY, USD and EUR.

Hedging Strategies On The Same Currency Pair Hedging on the same currency pair is an advanced strategy based on executing different types of trades on the same pair using different lot sizes to minimize losses and maximize profits. This strategy is best suited for intermediate and advanced forex traders.Here’s an example of such a strategy. A trader buys 0.1 lots of the EURUSD currency pair at 1.2130, after which they quickly opens a sell stop order of 0.3 lots on the same pair at 1.2100. This would protect them regardless of the direction in which the currency pair moves.

In this instance, if the currency pair does not rally to the initial profit target of 1.2160 for a 30 pip gain, but instead declines to a low of 1.2070, they would still profit. This is because the sell stop order becomes an active sell order once the pair breaches the 1.2100 level.

Conclusion This article provides a brief overview of the different hedging strategies that you can use when trading the forex markets. Hedging is an essential skill to learn in order to limit the risks associated with your open positions. Through a Open a Free Exness Demo Account you can test these strategies before applying them to live trades.

Frequently Asked Questions

Q: What is hedging in forex trading?

Hedging is a risk management strategy where a trader opens additional positions to reduce exposure to adverse price movements. Think of it as buying insurance on your open trades.

Q: Is hedging allowed on Exness?

Yes. Exness allows hedging on all account types. You can open opposite positions on the same or correlated currency pairs without restrictions.

Q: What are the best currency pairs to hedge?

Positively correlated pairs work best for hedging — for example EURUSD and GBPUSD, or AUDUSD and NZDUSD. When one moves, the other tends to follow, allowing you to offset risk between them.

Q: Does hedging guarantee no losses?

No. Hedging reduces risk but always comes at a cost — either through reduced profits or swap fees on overnight positions. It is a risk management tool, not a guaranteed profit strategy.

Q: Is hedging suitable for beginner traders?

Basic hedging concepts are accessible to beginners, but advanced hedging strategies using different lot sizes on the same pair are better suited for intermediate and experienced traders.

Q: How can I practice hedging before trading live?

Use a free demo account to test hedging strategies with no risk. Open your free Exness demo account here.

blog20

Why Is Liquidity So Important?

by with No Comment Forex

Have you ever run into the word “liquidity” while reading a financial report? It’s a term that gets thrown around by forex analysts all the time. Understanding liquidity can help you choose the right order types, which leverageto use, and how long you should keep your orders open. Soon you’ll understand the relationship between liquidity and volatility. Take your trading skills to the next level with this introduction to liquidity.

So what is forex liquidity and why should you care?

Liquidity is a measure of how easily a forex currency pair can be traded. Investments that can quickly be converted into cash are said to have high liquidity. The forex CFD market is liquid by nature, and traders can open and close trades in just a few clicks.

 

In contrast, real estate investment is much less liquid—especially during times of economic uncertainty. People selling a property may have a long wait until they can convert their investment back into cash, which is probably why forex has become so popular as an investment vehicle. Since liquidity indicates a safer or less volatile investment option, you might want to build your trading skills by limiting your trades to high liquidity currency pairs.

How can you find high liquidity currency pairs?

So you’re looking for a currency pair that offers the benefits of liquidity. Trading volume is a good indicator of liquidity. Trading volume refers to the amount and size of the orders being placed on a given currency pair. The more volume, the more stable the price line. The eight currency pairs with the highest volume and therefore liquidity are: EURUSD (Euro vs US dollar)

USDJPY (US dollar vs Japanese yen)

GBPUSD (British pound sterling vs US dollar)

AUDUSD (Australian dollar vs US dollar)

USDCAD (US dollar vs Canadian dollar)

USDCNH (US dollar vs Chinese renminbi)

USDCHF (US dollar vs Swiss franc)

EURGBP (Euro vs British pound sterling)

So now you know which pairs are favorably liquid, but why is this important? To better understand how liquidity influence prices, let’s scale everything down. Imagine that the liquidity for EURUSD comes from just 100 traders. One day, five people don’t make any orders. Trading volume shows a drop of around 5%. Prices will adjust, but nothing major will happen on the market. Now let’s consider an exotic currency pair like USDSEK. This time, only 10 traders generate the liquidity. One day, five traders don’t make an order. Trading volume drops by around 50%. Prices will adjust rapidly, and dangerous volatility will follow.

It all starts with volume

Let’s look at a real world example to demonstrate how volume changes the behaviour of the currency and price moves. Imagine three vehicles. A car, a bus, and a ship. The car represents those currency pairs that don’t get a lot of trading volume. Cars can be fast, light, and more maneuverable. The car can rapidly swerve or change direction, and even turn around at a moment’s notice. Because of the  limited volume, you can expect a wild ride when trading the “smaller” currency pairs. The bus is a heavier vehicle and much less maneuverable, and it carries a much higher volume.  It’s not the most popular choice for traders, but the higher volume still offers a slower, less-volatile ride.

The ship is by far the slowest at making course changes. Ships have massive volume compared to other vehicles. These “bigger” currency pairs are traded by many, enjoy endless liquidity, and make for a much smoother ride.The eight listed currency pairs above could be considered “ships”. Major currency pairs have massive volumes, and a change in direction is usually slow. The charts appear smoother with fewer spikes. Simply put, the more liquidity, the more volume, the slower the price change. The exception to this is when something “big” happens. When a nation makes a political or economiceconomic announcement that traders perceive as “bad for business”, investors can make the same conclusion at the same time and abandon the vehicle, destabilizing it as they go..

Example: When the UK announced Brexit in 2016, GBP investors everywhere probably came to the conclusion that a non-EU destination would be economic suicide. GBP investors started jumping ship, and sterling started sinking. Some traders stayed loyal and hopeful, and they are now battling a stormy or volatile transition.

Top tip for high liquidity traders

Trading high liquidity pairs means you can use wider ‘Take Profit’ and ‘Stop Loss’ settings. You might also consider a higher leverage depending on how stable the currency pair is. When checking for price reversals, sharp moves can be misleading. Make sure there’s plenty of volume behind the change. Whichever currency pairs you choose to trade, always take liquidity into consideration before setting leverage and stop orders.

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