MT4 doesn't have long to live - page 67
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Implemented by default - now there is always only one aggregate position and any closing will be based on it.
For NFA, the daily reports will be generated a little differently, to show execution according to FIFO rule.
Still dumb... What will the clearing look like?
Hm, sorry for dropping in again, the topic is really interesting. :)
But for one thing... Are you sure you know what you're saying? It's not like the FIFO was born out of nothing. ;) Think it over.
I'm sorry, SProgrammer, but my confidence is irrelevant. Take an excel and check it yourself if you have doubts.
And "first in, first out" was invented to deal with pseudo-traders-lockers who open a bunch of multi-directional positions and close only profitable ones, creating an appearance of growth (balance) while the real fall (equity).
// This is the official version. There's also an unofficial version... Some other time, if you behave yourself ;) By the way. Hi.
Please give us the details of the problem.
I'm sort of talking about stock exchange contracts. Let's imagine for simplicity that one retail client traded.
He bought 1 standard lot at 1700 in the morning, two more lots at 1750 in the afternoon, and another lot at 1800 in the evening.
The broker "sees" the same position - as if it was 4 lots at 1750 ;)
But we remember the contracts: The first was 1x1700.
the second was 2x1750.
the third and last was 1x1800...
But at the end of the day our trader decided to take a profit and bought 2 lots at the price of 1800.
it's kind of okay - master of the gun. 100 pips in the pocket.As if the profit of 50 pips per two lots.
Makes sense?
The final position in the dry residue is 2 lots of 1750!
Yes, I'm afraid it will be different - 1 lot at 1700 will close contracts - 100 points and one lot at 1750 - 50+100 points in total.
It means the position will be a bit different. It will be 1775...
And in fact, the first contract is 1x1750 and the next 1x1800. Therefore, after closing 1 lot for 1775, our character will not break-even on 1 lot, but will gain 25 pips. And the dry residue is 1 lot at 1800.
If you see otherwise, answer the question - where will the virtual contracts for the average position come from - this is an exchange, not an accounting in your mind?
Therefore, then close 1 lot at 1775, our hero will not breakeven on 1 lot, and a profit of 25 pips. And the dry residue - 1 lot at 1800...
Please explain why?
p.s. I read about FIFO (taxation) - the question disappeared.
First in, first out was invented to fight pseudo-traders - lockers that open a lot of multi-directional positions and close only profitable ones, creating an appearance of growth (balance) while actually losing (equity).
What is there to fight? Are they really taking money out of the market? :)
If equity is really falling, there is no need to fight...
And why fight them? Do they take money from the market? :)
If equity is really falling, there's no point in fighting...
Money is taken away from investors. Lockers take money from suckers.
And FIFO, then, is on guard.
At least that is what the concerned supervisory authorities have in mind.
;)
Money is being taken away from investors. Lokers take it from lokers.
And FIFO, then, is on guard.
At least, that's the way it's designed by the comptrolling supervisory authorities.
;)
Who can clearly explain why lots are a threat to DCs, that MT5 banned the use of lots to please them, unreasonably restricting traders' freedom of action?
Who can clearly explain why lots are a threat to brokerage companies that MT5 has banned lots for their benefit, unjustifiably restricting the freedom of action of traders?