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It is already clear that MT5 will never be a stock exchange terminal
.... It is already obvious that MT5 will never be a stock exchange terminal, ....
explain, as the prospect of an mt5 exchange terminal is a significant factor determining all my further interest in this project
It's probably his own feeling.
That's for sure. It is purely my opinion formed during several years of watching the development of the product. In short, the main problem is that the developers have delegated the development of functional, which distinguishes the exchange terminal from the OTC one, to service-support of the brokers who in turn see MT5 as just an improved version of MT4. They will not develop an exchange direction for several reasons. Firstly, the customer structure has not changed fundamentally, these are the same brokerage companies that do not provide access to the exchange. Second, the maintenance of exchange infrastructure - a very monetary and global issue. It is not enough just to keep the quotes history. You have to work out the interaction with the clearing and settlement houses, arrange delivery of futures, link the futures and stock (spot) markets, monitor the collateral of participants, etc., etc. (we cannot list all the nuances, there are dozens of them), all within the laws of the country where the trading takes place. There are also other limiting factors. One thing is clear, MT5 has developed enough to understand its future niche: it is ECN, instant execution and excellent liquidity, but still in the best case interbank market. Well, that's not too bad, for such a narrowly specialised product.
Being on the other side and not knowing the processes in place, one cannot draw reliable conclusions.
And you make them.
Being on the other side and not knowing the processes in place, one cannot draw reliable conclusions.
And you do.
1. Solving this issue is more difficult than it seems, the format for presenting options is different from forex quoting.
Options are essentially insurance policies, and at one point in time can have a different price with different delta.
2. In fact, for each moment, a table similar to a market stack will be required.
I don't know how to represent all this graphically, and the platforms that exist are very different from MT, so there is no way to just copy them.
1. I can't make it much more complicated than that. See point 2. The charts will be presented in the same way as now in the terminal.
2. Many people confuse the premium of an option with the price of the underlying. The price of the underlying is represented in the quotes in exactly the same way as the price of e.g. currency pairs. However, the option premium is calculated with one of the models based on the underlying, so you don't need quotes for the premium (you can calculate it for any point in time). Essentially, the terminal does not need to change anything, you just need to add one of the models for calculating the options (and ideally, for compatibility with most exchanges, all models - there are not that many):
A distinction is made between American and European options, the essence of which is similar to pending order execution (again - the changes in current functionality are minimal):
An American option can be settled any day before expiration. That is, for such an option, a time period is set, during which the buyer can execute the option.
AEuropean option can only be exercised on one specified date (expiry date, exercise date, maturity date).
MQ promised support for options in the terminal - they only need to add a software module for calculating options (premium) to the terminal. And with such a powerful language like MQL5 it will be possible to create panels for analysis of options which some tnkoswirm could not even dream of. Support of options and futures will be the final and irrevocable victory of MT5 over competing platforms.
However, the option premium is calculated using one of the models based on the underlying asset, so no quotes for the premium are needed (you can calculate for any point in time). Essentially, you don't need to change anything in the terminal, you just need to add one of the option calculation models (and ideally, for compatibility with most exchanges, all models - there aren't that many):
You are very much mistaken. Options premiums can easily deviate from the values calculated by the formulas.
The Black-Scholes formula, in its simplest form, is derived from the assumptions of normality and homoscedasticity of price changes. Both of these assumptions do not hold in reality. Therefore, for example, the real price of options at long strings appears to be higher than the values obtained by the Black-Scholes formula.
Theoretical prices will be useless for testing strategies.
1. It's not much more complicated than that. See point 2. The charts will be presented as they are now in the terminal.
I will now change my tone to methaquot and try to answer in their style, k-hee, k-hee, k-hee:
Trading in a closed and OTC platform, you don't know all the technical processes and logic of dealing with such data, you can't judge the ease of integration of exchange infrastructure into MT5. Who needs options! - Just a few. And this is the cost of infrastructure and support. We make decisions which affect the functioning of hundreds of thousands of millions of traders' jobs all over the world. So why should you follow these units, when tens of billions trillions of traders around the world already use MT5 in classic EURUSD trading?