MT4-TO-MT4 BRIDGE

The MT4-to-MT4 bridge is used to establish connection between two or more Metatrader 4 Servers and redirect trade requests from one server to another. The plugin addresses three questions:

• Reduce trading risk
• Gain Volume
• Automate Dealing

PRINCIPLES OF WORK

The MT4-to-MT4 bridge consists of two server plugins. The TradeServer plugin is installed on the MT4 Server of the liquidity provider and is used to accept incomming connections from the client brokers. The TradeCoverage plugin is installed on the server of the client broker and connects to the liquidity provider. Thus the MT4-to-MT4 bridge is capable of connecting two or more Metatrader 4 Servers and redirect trade requests from one server to another. The bridge extends functionality of the Metatrader 4 Server and addresses three problems.

• Reduce trading risk. When clients trade on their individual accounts in Metatrader 4 they create risk for the broker. To reduce such a risk the broker needs to open similar positions with its counterparty. The TradeCoverage plugin allows redirecting trade requests from the individual client accounts and execute them on the coverage accounts of the Metatrader 4 Server of the counterparty broker. This reduces trading risk for the broker.
• Gives ability to become a liquidity provider. The TradeServer plugin allows connections from many Metatrader 4 Servers. The coverage accounts can accept trades from all the connecting servers.
• Automates trade execution and dealing. When trade request is sent through the TradeCoverage plugin it is passed to the remote dealing desk of the counterparty broker. The counterparty broker confirms or rejects trade request and the response is sent back. So the trades are confirmed remotely, no local dealing desk is required.

OPERATIONAL ALGORITHM

• When client is sending trade request from the Metatrader 4 Terminal or Metatrader 4 Manager the trade request is intercepted by the TradeCoverage plugin.
• The TradeCoverage plugin is checking whether the trade request from the client account is supposed to be redirected to the TradeServer plugin. This checking is performed based on the TradeCoverage plugin parameters. The parameters of the TradeCoverage plugin allow flexible management of the accounts and groups based on the group name, risk factor and minimal lot size.
• When client trade request is matched then it is sent to the TradeServer plugin for execution on the coverage account which was setup for it.
• TradeServer plugin receives the trade request from the TradeCoverage plugin. If the trade request is for closing position then order matching algorithm defines which trades should be closed on the coverage account for this trade request.
• Then the trade request is passed to the dealing desk for confirmation.
• When the dealing desk (or automated dealing plugin) confirms the trade request then appropriate order(s) is opened/closed on the coverage account
• Confirmation is sent back to the TradeCoverage plugin and appropriate trade is opened/closed on the client account.

OPERATIONAL DIAGRAM

COVERAGE MANAGER APPLICATION

The application is used to connect to the Liquidity Provider (LP) and to the Client Broker (CB) servers at the same time. It is used by the CB managers to track trading operations and change plugin parameters. The application has the following features:

• See Market Watch for both LP and CB price feeds and be able to compare the prices in real time.
• See open trades for both LP and CB. All the trades are matched. Ability to find matched trade on both servers with a single click. Ability to sort trades by any parameter.
• Exposure is calculated in real time per symbol.
• All the parameters of the server plugin can be changed in real time with the user friendly Settings interface.
• The Logs are retrieved in real time from both LP and CB servers for fast access to the required information about trading operations.

DEMONSTRATION