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Single Stocks on the MT4 Platform

Traders at Darwinex can now trade single stock CFDs on the MT4 platform.  This is the precursor to allowing investment in single stock DARWINs.


A year and a half ago we launched our first offer of single stock contracts for difference.  We started with the 30 single stocks on the Dow Jones Industrial Average on the MT5 platform.  Half a year later, we added a selection of the more liquid single stock CFDs from the NYSE and the Nasdaq, likewise on MT5. The total offer extends to some 250 US stocks.  Another half a year later, we launched single stock DARWINs in beta (DARWINs created but not investable).

We are now introducing the possibility to trade our single stock CFDs on the MT4 platform as well. With this change, we hope to significantly increase the number of single stock DARWINs before allowing investment in these DARWINs.


In order to trade live single stocks in MT4, you would have to create a new MT4 account.  You cannot trade them in the same account which you use to trade other assets.  Another restriction is that you cannot connect nor migrate single stock MT4 accounts from another broker.

Open an MT4 account for trading shares


In terms of cost and execution, there is no difference between MT5 or MT4. The $0.04 per contract roundtrip brokerage commission you pay us buys you the best fill in the open market, including both CBOE and every alternative via systematic internalisers under the Mifid regime in Europe.

Consult our single stocks on offer


For a complete explanation of how Darwinex’s share CFDs work, check out this webinar recording from last May. The webinar covers the following topics:

  • Why Darwinex started offering single stocks CFDs
  • Why CFDs instead of cash stocks
  • Risks of CFDs
  • CFDs vs. direct market access (DMA) CFDs
  • The price you see
  • The price you get
  • Slippage in the case of stocks

 


Do you have any questions regarding trading single stocks on MT4? Do not hesitate to share them in comments.


Photo by Arch_Sam on Foter.com / CC BY

risk ajustment graph

Changes to the Ra (Risk adjustment) graph

From now on the Ra (Risk adjustment) graph will show positions in the colour orange, in addition to the red and green which have been used up until now.


The aim of the Ra graph is to inform DARWIN manager and the investors of the amount and size of the adjustments which have been carried out by the risk manager.

It is important to remember that the leverage for the DARWIN position’s trades, whenever the risk manager doesn’t act, is always:

trader leverage * VaR (10%) / VaR trader (x%)

The manager can intervene for two reasons.

Positions in red

The positions in red are adjustments made by the manager because the trader has taken on more risk than usual compared with recent activity in the past.  As a consequence, the risk manager must intervene to avoid the DARWIN’s VaR going above 10%.  We consider these interventions to be the responsibility of the trader, and as such the Ra score is penalised, and in turn the D-Score.

Positions in orange

The manager can also intervene when the DARWIN leverage is excessive when using the previously mentioned formula, even when the global DARWIN risk for 1 month does not exceed a 10% VaR.

This happens when the underlying strategy always trades short term with relatively few trades a month.  In these instances, if there were no adjustment, the DARWIN could reach a leverage of over 30:1 in some cases.  This is dangerous for investors if in the time of the trade being open there is a very big movement on the underlyings (0.5% of movement on the underlying assets would result in a sudden loss of 15% on the DARWIN).

This is why there is a limit on the DARWIN leverage, meaning there are position which are closed without sticking to a target monthly VaR of 10%.

The leverage limits applied by Darwinex are the following:

  • For positions lasting less than 30 minutes, the maximum D-Leverage allowed will be 15.
  • If a position lasts between 30 and 60 minutes, the maximum D-Leverage that a DARWIN could open is 12.5.
  • Lastly, if the position lasts more than 60 minutes, the maximum D-Leverage would be 10.

These positions have always been adjusted, but they have never been shown on the Ra graph, creating confusion amongst our clients.

From now on, this will be shown in orange and will give an approximate indication of the adjustment carried out.  These adjustments, unlike the ‘red ones’, do not affect the score because we do not consider them to be a result of bad management by the trader.


Related article: What does the Risk Adjustment (Ra) attribute tell about a trading strategy / DARWIN?


Do you have any questions about the changes to the Ra graph? Do not hesitate to share them in the comments.