How to Trade Forex/CFDs in Deriv MT5

How to Trade on the MetaTrader 5 Platform

How to login to MetaTrader 5

Visit https://deriv.com/ and log in to your account

Select ‘DMT5’ from Menu

On the Deriv MT5 dashboard, Choose Account Type you want to trade and click "Add demo Account", then click ’Trade on web terminal’

Next, log in to your MT5 account, enter MT5 login and Password

How Open a new Position

Step 1: Right-click your chosen symbol (currency pair) and select ‘New Order’ or simply double-click on the symbol to open the ‘New Order’ window

Step 2: Adjust the limits of your contract and select ‘Buy by Market’
Note: You can also choose ‘Sell by Market’ to ‘short sell

Step 3: Click ‘OK’ to confirm the order

How to close your position in MT5

Step 1: Double-click on the open position in the Terminal window to modify or delete the order

Step 2: Click ‘Close by Market’

Step 3: Click ‘OK’ to confirm

Or To close an open position, click the ‘x’ in the Trade tab in the Terminal window.

Or right-click the line order on the chart and select ‘close’.

As you can see, opening and closing your trades on MT5 is very intuitive, and it literally takes just one click.

How to check your ‘trading history’

Step 1: Click on the ‘History’ tab to view the profit/loss for a contract

Step 2: Select a particular contract and refer to the ‘Profit’ column to see its profit/loss

What can you trade with Deriv.com?

Major pairs

The most popular, commonly traded currency pairs, such as EUR/USD and USD/JPY. All major pairs include USD since it’s the world’s most traded currency.


Minor pairs

Currency pairs that don’t include USD, but still encompass the currency of developed countries. This could be GBP/CAD or EUR/CHF


Exotic pairs

Currency pairs consisting of one major currency and the currency of a developing country, such as Turkey (available on DMT5). Pairs such as USD/RUB or USD/THB  would come under this group.

Unique Digital options offered by Deriv.com

Digital options have a fixed payout and a fixed premium. Before purchasing each trade, you’ll know the exact cost of each trade and how much you stand to gain or lose. At worst, the maximum that you could ever part with is the price initially paid to purchase the trade; at best, you’ll win back your initial stake plus the payout amount displayed for your consideration when you first bought the trade. Thus, as forex trading goes, the digital option route is clear-cut and predictable in terms of the potential outcomes. Your risk on DTrader is strictly limited to your premium.

Deriv Digital options give you a variety of ways to profit from a currency pair

In my new E-book How To Trade the Forex market I go into more depth on the different ways to back a currency as well as how I use technical analysis to help spot trends in the market. I also go through the Forex terminology and take your through trading examples.

FX Contracts For Difference (MT5)

A CFD is a derivative product that you can use to speculate on the future direction of a market’s price. You’ll never take ownership of the underlying asset (in this case, currencies). Profit or loss results only from the difference in the price of the underlying asset when the contract is closed. A CFD gives you exposure to a market and allows you to go long (trade for the price to go up) or short (trade for the price to go down). The CFD will remain open until you close it or it gets stopped out.

Deriv.com believes in reasonable trading and offer ways to limit your risk such as stop loss, take profit and limit orders they also offer a no negative balance guarantee which means should a trade go heavily against you and you don’t have a stop loss order you will not be asked for additional funds.

Deriv.com use Metatrader 5 (MT5)

MetaTrader 5 (MT5) is a robust online trading platform developed by MetaQuotes Software. Whilst, at first sight, MT5 can look a little overwhelming, take it a bite at a time and you’ll easily be able to rise to master it. The software is available free of charge and can be downloaded on a desktop or you can use a mobile device will apps available for Android and iPhone/iPad

The power of Leverage

If you have say $1,000 with no leverage then the most you could trade is $1000 which is not that appealing fortunately Deriv offer generous leverage which will vary depending on your country of residency. Lets take for example 50:1 leverage this means for every $1000 you can control $50,000 this of course will magnify your gains and losses so should be used carefully. I explain risk management techniques in my E-book How To Trade Forex

Trading a pair

In currency trading you are always trading a pair, its one currency The base currency against the quote currency. If you went long (buy) EUR/USD then you are buying Euros and Selling US Dollars, you cannot just say buy Euros.


Bid price: The bid price (SELL) is what the broker is willing to pay for the base currency in this example 1.18816

Ask price: The ask price (BUY)  is the rate at which a broker will sell the quote currency. The ask price is always higher than the bid price in this case 1.18831

Spread: The difference between the ask price and the bid price, which allows the broker to earn a commission on your trade. After you cover the spread between the bid and ask prices, you can start making a profit on your position. (Spread = Ask price minus Bid price). Tighter the spread the better.

Overall currencies do not move in large percentages but what exaggerates the moves is the use of leverage. A 0.5% daily move when you have 100 x leverage becomes magnified.

Average True Range (ATR)

The  chart below of the EURUSD was plotted using MetaTrader5, by MetaQuotes. It is the standard for charting Forex pairs, and is free to download from Deriv. It shows a daily chart, where each candle represents a full day.

At the very bottom you can see the ATR, which stands for Average True Range. The parameter, 20, indicates that it is an average of the last 20 candles. Its current value is 0.00633. If you look at the last 10 bars as the price is dropping the ATR has gone up which means more volatility.

You can easily change this in MetaTrader5 if you want an average for a longer or shorter period. The average month has 20–22 trading days and 20 is a popular one to use.

 

FAQ

What is DMT5?

DMT5 is the MT5 platform on Deriv. It is a multi-asset online platform designed to give new and experienced traders access to a wide range of financial markets.

What are the differences between the DMT5 Synthetic Indices, Financial and Financial STP accounts?

The DMT5 Standard account offers new and experienced traders high leverage and variable spreads for maximum flexibility.

The DMT5 Advanced account is a 100% A Book account where your trades are passed straight through to the market, giving you direct access to forex liquidity providers.

The DMT5 Synthetic Indices account allows you to trade contracts for difference (CFDs) on synthetic indices that mimic real-world movements. It is available for trading 24/7 and audited for fairness by an independent third party.
 

Why are my DMT5 login details different from my Deriv login details?

MT5 on Deriv is a standalone trading platform that isn’t hosted on our website. Your DMT5 login details give you access to the MT5 platform while your Deriv login details give you access to the platforms hosted on our website, such as DTrader and DBot.
 

How can I deposit funds into my DMT5 real money account?

To deposit funds into your MT5 account on Deriv, you’ll need to use the funds in your Deriv account. Go to Cashier > Transfer between accounts and follow the instructions on the screen.

Transfers are instant. Once you’ve completed all the steps, your DMT5 account balance will be updated immediately.
 

How can I withdraw funds from my DMT5 real money account?

To withdraw funds from your MT5 account on Deriv, you’ll need to transfer the funds to your Deriv account. Go to Cashier > Transfer between accounts and follow the instructions on the screen.

Transfers are instant. Once you’ve completed all the steps, your DMT5 account balance will be updated immediately.