Forex glossary
MetaTrader 5 (MT5)
MetaTrader 5 is MetaQuotes' multi-asset platform with charts, orders, an economic calendar and MQL5 tools. It can handle OTC and exchange instruments when offered by the broker. Netting or hedging depends on the account; platform capability does not guarantee a particular product offering or execution quality.
Illustrative example
How does it work in practice?
Assume an MT5 netting account buys 0.10 lots then sells 0.04 lots of the same pair. The net position becomes 0.06 lots; a hedging account can instead maintain separate positions.
A case to work through
A sell larger than the position
A hypothetical netting account holds 0.20 lots long; an executed sell is 0.35 lots.
- The sell offsets the 0.20-lot long.
- The remaining 0.15 lots create short exposure, assuming full execution.
What follows? Record the net result rather than two independent hedged positions.
Example boundary: Check account mode, permitted volume and execution with the broker.
Checking the net position
Text description of the diagram
- Account mode: Confirm netting or hedging before comparing.
- Opposing trade: With netting, offsets existing exposure.
- Remaining amount: Calculate sign and size after full execution.
A useful distinction
MetaTrader 5 (MT5) / MetaTrader 4 (MT4)
MT5 can support netting or hedging depending on the account; MT4 uses a different program environment.
Check your understanding
Calculate a net position after an opposing trade.
Show the answer and explanation
Long 0.20 lots
The opposing trade reduces the net position.
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Related terms
Sources and documentation
- MetaTrader 5 – platform
Multi-asset platform capabilities and account-dependent position and instrument arrangements.
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The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.