LeapRate's Daily Forex Industry Newsletter
Join now to receive first access to our EXCLUSIVE reports and updates.
Screenshot of a breaking news alert e-mail from Q2 2017
It was about a month ago that LeapRate reported about OANDA introducing an MT4 Hedging Compatibility tool to clients of its businesses in Europe, Canada and Asia Pacific. Back then the company promised that the tool will soon be accessible to its clients in other regions. Today the technology-driven company has shown that it is true to its words, as it announced that customers of OANDA Japan can now make use of the new solution too.
The condition is simple – traders should open a dedicated sub-account for the MetaTrader 4 (MT4) platform, which will be hedging compatible.
Let’s briefly recall what the MT4 Hedging Compatibility tool is like. It does not allow hedging per se, but it enables traders to see positions with a given instrument in a hedging-friendly way on MT4. For example, if you have opened several various positions (buy and sell) with the USD/JPY pair at the same time, you can see them as separate positions in MT4. On fxTrade, which will remain the official system of record, you will see a single net position for all of the positions with the USD/JPY held open.
Traders are not actually hedging when they make use of the new tool.
Among the advantages of the new product is that it allows the use expert advisors (EAs) based on hedging as their trading strategy. Another advantage is that it will permit simultaneous trading with several robots with contradicting strategies (e.g., one opens a long position with EUR/USD and the other – a short), without the need to worry about them conflicting.
The launch of the new product in Japan is a very smart for several reasons. One is, of course, presenting traders with a novel solution. Another is the fact that the number of FX brokers that offer trading on MT4 in Japan is not that big, especially after Monex and YJFX stopped supporting the platform. Then, there is the unknown status of Alpari Japan, which was also a prominent provider of trading on MT4 in Japan. OANDA is now enhancing its MT4 service in a market with only a handful competitors.
To view the official announcement by OANDA Japan on the new tool launch, click here.