The forex MetaTrader 4 platform is a popular and dependable platform that traders across the world use. Many forex traders use the platform’s many features that have propelled it into a standard in the online forex trading world. MetaQuotes Software Corp developed MetaTrader 4 (MT4) in 2005.
The platform is a multiple asset trading platforms where traders can trade CFDs, forex, stocks, commodities, and indices. Reputable brokers have been providing MetaTrader 4 to their customers as a substitute for their proprietary trading platforms.
MT4 offers robust analytical capabilities, automated trading operations, and multiple device operability. The platform comes with a user-friendly interface and provides adequate convenience to traders of different experience and skill levels. Read on to understand the advantages of MT4.
Access to Real-time Market Liquidity and Prices
Forex MetaTrader 4 gives traders access to forex quotes and allows them to perform trades in actual time. The securities or currencies that traders opt to trade with via a broker are indicated in the Market Watch section. The actual-time ask or bid and the security symbol are also indicated.
Traders are also able to view other details such as contract size, spread, margin percentage, and margin currency from this window. Further, traders will get the Depth of Market feature that informs them about actual time market activity. For example, you can view the number of sell or buy orders for a currency pair at varying prices as the market depth segment.
This data provides an idea about the market segment. If it shows bid side liquidity to be more compared to the offer side liquidity, then the general trend for a currency pair will be considered bullish. In case of increased liquidity, chances are that orders will be charged at the prevailing prices. This concept can be critical for short term trading strategies such as scalping.
Different Trading Orders for Enhanced Flexibility
There are various types of execution modes and trading orders that allow traders to develop and enforce their preferred strategy. MetaTrader 4 allows four pending order types and two market orders. It also comes with three trade execution mode types, which give traders increased flexibility.
Risk management approaches are critical when it comes to forex trading success. The forex MetaTrader 4 comes with two stop order types, trailing stops, and take profit orders to reduce downside risks. A stop-loss order closes a position automatically if the market drifts in the opposite direction of the forecast.
Take-profit enables traders to confine a preferred amount of gains before closing the position once prices reach the pre-set level. Placing these orders is easy, and traders can launch them from the toolbar or directly from the chart. You can also change or delete them easily.
Fundamental and Technical Analysis Tools of Different Levels
Forex MetaTrader 4 comes with various charting capabilities and in-built indicators and offers multiple tools to facilitate price analysis. There are more than 30 builtin technical indicators in the MT4 platform. These include major volume and trend tools such as Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), Fibonacci Retracements, and On-Balance-Volume (OBV).
Traders can see unlimited charts at once, while each currency pair can appear in up to 9 varying timeframes which range from one minute to monthly breaks. Traders can access extra charts from the MQL4 (MetaQuotes Language 4) community. Some traders may want to develop their indicators as well.
In-depth chart evaluation, drawing objects, and mathematical tools enable traders to evaluate price changes of different complexities. Further, traders can customize these charts based on their preferences. They can even save them depending on different trader policies. Traders can predict price movements and identify resistance and support levels, configure stop-loss levels and define exit and entry points from the charts.
A trader can set alerts depending on the nature of major financial news or economic data. Further, traders can customize access to relevant data to a specific market.
Forex MetaTrader 4 is a versatile platform that traders of different skill and experience levels can use. It offers excellent customization and flexibility options, making it popular among both traders and brokers.
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