MT4 Hedging Compatibility

View long and short positions for the same instrument on the OANDA MT4 platform

SETUP AN OANDA MT4 HEDGING COMPATIBILITY SUB-ACCOUNT

Enable this functionality on an existing legacy MT4 sub-account via the Funds Management System. You will need to close any existing open positions on your existing sub-account to enable this functionality.

Note: v20 accounts support hedging natively which replaces this functionality. MT4 Hedging Compatibility enabled accounts can only trade on the OANDA MT4 platform while using the GMT+2 Live server.

MULTIPLE LONG AND SHORT POSITIONS

OANDA’s MT4 Hedging Compatibility product simulates the trading of multiple long and short forex and CFD positions in the same instrument (often referred to as “hedging”) over the OANDA MT4 platform. No actual hedging of exposure results from use of this product.

Multiple long and short positions

ACCESSING ACCOUNT INFORMATION

The OANDA MT4 platform will display hedged trades while the OANDA Trade transaction system and platform will continue to net out existing positions.

Use the OANDA fxTrade platform as the system of record, and accurate account information, such as the account balance, transaction history, finance charges, and how close the account is to triggering a margin closeout.

Access account information

MARGIN CALCULATIONS

The OANDA MT4 platform will calculate Margin Used and Margin Available based on the longest leg of open hedged positions, enforcing maximum trade sizes based upon those margin calculations.

The OANDA Trade platform will instead use the net position for Margin Used and Margin Available, and margin closeouts will be triggered based on these calculations.

Margin Calculations

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Frequently Asked Questions

Does this product support Expert Advisors (EAs) that require hedging?

Yes, EAs are supported.

Which MT4 server should I select?

To use the MT4 Hedging Compatibility product you will need to sign into the GMT+2 Live server.

What do the balance transactions in the Account History of the OANDA MT4 platform mean?

Positive interest will show up as a deposit; negative interest will show up as a withdrawal. MT4 will also re-sync with fxTrade on occasion to update the account balance and NAV of your Hedging Compatibility account. When these updates are made, they will be recorded as balance transactions.

Note: these re-syncs will not actually cause your account balance of your Hedging Compatibility account to change; they will merely ensure that the MT4 platform more closely resembles fxTrade (the system of record).

What happens if I trade on a different OANDA platform with my MT4 Hedging Compatibility enabled account?

Most OANDA platforms will not allow you to open new trades or close existing positions.

If you do manage to make a trade through another platform, it could cause significant issues with your account. For instance, MT4 may interpret account closures as new positions, and pending orders, stop losses, take profits, or trailing stops may be lost.

Can I enable MT4 Hedging Compatibility on a v20 account?

MT4 Hedging is not supported on v20 accounts. v20 clients should open v20 Hedging accounts instead to access the same functionality.

Can I have multiple MT4 Hedging Compatibility accounts?

Yes. Although, v20 accounts do not support the MT4 Hedging Compatibility product. v20 clients should open v20 Hedging accounts instead to access the same functionality.

Once I’ve enabled Hedging Compatibility on my MT4 account, can I disable it?

Yes. You can disable this functionality within the Funds Management System. Note that you will need to close all open positions first.

Will pending orders, stop losses, take profits, or trailing stops still work with my MT4 Hedging Compatibility enabled account(s)?

Yes, pending orders, stop losses, take profits, or trailing stops work with your MT4 Hedging Compatibility enabled account(s)

What would happen to my MT4 Hedging Compatibility account in the event of an outage on either OANDA’s trade server (fxTrade) or the MT4 server?

In the event of an outage, the information shown on the MT4 trading platform may be adjusted and hedged long and short positions held in a single instrument may no longer be shown on the OANDA MT4 platform. Most likely, the net position recorded on the OANDA trading platform will have replaced them.

What happens if there is a data error that is retroactively corrected on an MT4 Hedging Compatibility account?

If a price spike causes a trade to close or a pending order to trigger when it shouldn’t have, OANDA will ensure that appropriate trades are corrected in OANDA’s trading system (fxTrade which is the system of record), and the net position will be properly adjusted within your OANDA trading account.

While a best effort will be made to ensure the proper trades are reflected on MT4, the MT4 Hedging Compatibility account may still display unexpected information related to the data error and/or cause issues with EAs that the customer should review.

How will taxes be handled on hedged positions?

When reporting long-term versus short-term capital gains from your MT4 Hedging Compatibility account, you should reference the holding periods associated with the net positions found in your OANDA trading account (fxTrade, which is the system of record) transaction history.

What happens if there is a systematic trade error?

Should a price spike requiring correction or outage occur on the OANDA trading server (fxTrade) or OANDA MT4 servers, a best effort will be made to ensure the information shown on the OANDA MT4 platform remains consistent, but the Hedging product may be adjusted in such a way that Expert Advisors are no longer able to track previous trades and “hedged” long and short positions held in a single instrument may no longer be shown on the OANDA MT4 platform.

How is 'hedge' mode on the MT4 platform different than my OANDA trading account?

There are differences in the display of open positions. OANDA MT4 platform will display 'hedged' trades while the OANDA trading (fxTrade) transaction system and platform continues to net out existing positions.

OANDA trading account – Opposing orders on a specific product pair (i.e. long vs short) will close existing open positions for that pair. Any unrealized profit or loss will be realized if an opposing order is placed.

MT4 platform – Opposing orders will display as new, open positions on the MT4 platform. Unlike the OANDA trading account which nets opposing orders and therefore would indicate zero open positions, the unrealized profit or loss will continue to display on the MT4 platform.

Which system should be relied upon for accuracy?

The OANDA trading platform will remain the system of record, and should be referenced for accurate account information, such as the account balance, transaction history, interest payments, and how close the account is to triggering a margin closeout.

What are the deposit options to fund my OANDA account?

Our deposit options vary based on the OANDA division with which you hold your account. Please check the relevant Deposit Funds with OANDA section for more details.

What are OANDA’s margin rules?

The OANDA platform supports margin trading, which means you can enter into positions larger than your account balance. OANDA’s margin rules vary based on the regulatory requirements applicable to the OANDA division with which you hold your account. Please select the applicable OANDA division to learn more details about OANDA Margin Rules.

Where do I find OANDA’s registration forms, legal and trading documentation?

OANDA’s registration forms, legal and trading documentation vary based on the OANDA division with which you hold your account. Please check the relevant Legal & Regulatory Documentation section for more details.
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COMPETITIVE SPREADS, NO COMMISSIONS

Trade over 70 currency pairs, as well as Metals, Commodities, Bonds and Index CFDs with spreads as low as 1.2 pips on EUR/USD.

† Disclaimer:

Contracts for Difference (CFDs) or Precious Metals are NOT available to residents of the United States.

The Commodity Futures Trading Commission (CFTC) limits leverage available to retail forex traders in the United States to 50:1 on major currency pairs and 20:1 for all others. OANDA Asia Pacific offers maximum leverage of 50:1 on FX products and limits to leverage offered on CFDs apply. Maximum leverage for OANDA Canada clients is determined by IIROC and is subject to change. For more information refer to our regulatory and financial compliance section.

Hedging capabilities not available to residents of the U.S.

The fxTrade platform, not MT4, will remain the system of record, and that it is recommended that customers reference fxTrade for accurate account information.

OANDA’s MetaTrader 4 (MT4) Hedging Compatibility product simulates the trading of multiple long and short forex and CFD positions in the same instrument over the OANDA MT4 platform. No actual hedging of exposure results from use of the Product.

The OANDA MT4 platform may display inaccurate information with regards to the actual Account Balance, Net Asset Value, and Unrealized Profit & Loss of the account. In addition, the OANDA MT4 may imply inaccurate information with regards to impending Margin Closeouts or potential Interest payments.

OANDA assumes no liability for loss attributable to forex & CFD trading activity using the MT4 hedging compatibility product.

Refer to the detailed risk warning and OANDA Hedging Compatibility Product Terms of Use for further information.

Your capital is at risk. Losses can exceed investment. Leverage trading is high risk and not for everyone.