18 Sep

Coverage Account – Bucketing and Auto Hedging Plugin for MT5 by Your Bourse

September 18, 2023

Coverage Account – Bucketing and Auto Hedging Plugin for MT5 by Your Bourse

The Coverage Plugin in MT5 is a powerful tool that enables various functions and capabilities within the trading platform. Its primary function is to accumulate opened position volumes from the trading account on the same MT5 server. However, it offers much more than that. In this article, we will explore the features and setup process of the Coverage Plugin, and delve into different scenarios where it can be utilised effectively.

Understanding the Coverage Plugin

The Coverage Plugin in MT5 serves multiple functions, including accumulating position volumes from the trading account on the same server. Additionally, the Your Bourse plugin offers several other capabilities:

  1. Volume Hedging: It enables hedging the volume of lots from the trading accounts to the coverage accounts. The function allows the accumulation of lots from one of the trading accounts to the trading account on the same or different servers.
  2. Symbol Mappings: This capability allows the translation of mapped symbols to core symbols or other mapped symbols. For example, it enables the transfer of volumes from EURUSD.m on the trading account to EURUSD in the coverage account.
  3. Exposure Auto Hedging: This functionality allows for exposure full or partial hedging from B-book to A-book with the possibility to set up a particular volume step increment.
  4. Conditional Hedging: Under certain conditions, such as when the order volume on the B-book exceeds five lots, all customised volume increments can be directed to the A-book coverage account.

Using Coverage Account Auto Hedging Functionality

The Coverage Hedging functionality can be used in various scenarios to suit different trading needs. Here are a few examples:

  1. Common Coverage Scenario: In this scenario, the trades opened or closed will be mirrored in the coverage accounts. This functionality can be enabled in MT5 Administrator.
  2. Mapping Symbols Scenario: This scenario involves transferring orders from mapped symbols in the trading account to core symbols or other mapped symbols on the coverage account. This can be easily configured from the YourBourse portal. When trades are executed on the trading account, corresponding orders will be opened on the coverage account.
  3. Unconditional Hedging Scenario: In this scenario, orders placed in the B-book trading account will be transferred to the B-book coverage account, and an increment value can be configured to be added to the A-book coverage account. The specified increment value will be automatically added to the A-book coverage account for each volume traded on the B-book account.
  4. Conditional Hedging Scenario: In this scenario, orders placed in B-book will be transferred to the B-book coverage account, and, based on specified conditions, a customised increment value will be added to the A-book coverage account. This transfer will occur only if the volume of the order exceeds a predefined unhedged threshold and therefore the position will be hedged.

Setting up Coverage Accounts

The Coverage Plugin consists of several important elements that can be configured on the Your Bourse portal.

To enable coverage hedging functionality, you need to install the coverage plugin, configure the rules on the Your Bourse portal, create trading and coverage accounts, and set up routing rules.

Conclusion

The Coverage Plugin in MT5 provides traders with a range of functionalities and features to enhance their trading experience. By understanding its setup process and various scenarios in which it can be utilised, traders can effectively hedge volumes, map symbols, and customise increments between trading and coverage accounts. The Coverage Plugin offers a versatile tool for risk management and trading strategies on the MT5 platform.

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About Your Bourse

Your Bourse offers software solutions for the retail and institutional MT4/MT5 brokers. Including: MT5 gateway & MT4 bridge, multi-asset liquidity aggregation, risk management, client profiling, real-time and historical reporting, MT4/MT5 hosting in all Equinix data centers with 99.999% SLA, plugins for MT4 & MT5 and FIX API connections for the B2B clients.


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