Opportunities for MT4 Trading
Whether you are a novice trader seeking to break into the forex market or one who has a stint in online financial market dealings, you might have heard of MT4. And if you haven’t, there is no cause for alarm.
In simple terms, the MetaTrader 4 is an online platform that allows you to carry out forex trade. Although its function is not only limited to the forex market, it is one of its main areas of application. Read on to find out more about this faithful servant and its functions.
What is MT4?
The MetaTrader 4 is an online trading platform that automates the entire process of trading in the forex market. This platform is popular and its other famous variant is the MT5. The MT4 was invented by MetaQuotes in 2005.
One of its major functions is the display of live market updates usually in the form of detailed charts. These technical market updates are very essential in determining whether a trader should proceed with buying or selling a currency or commodity.
A lot of people wonder if access to MT4 requires some sort of payment. No, it doesn’t require any payment. Prospective traders have to be wary of brokerage trade on MT4.
All a customer has to do after a MetaTrader download on their chosen device is to install and begin trading. Prospective traders can download the software on their android or iOS devices. It can also be installed on a PC or MAC.
For traders who do not want to make use of any of the above options, they can carry out their transactions through the web browser option.
The MT4 trading platform has two components which are the server and client component. The server component is used and operated by the broker, while the client component which is provided by the broker is used by the clients. The client uses this in the management of their account, placing orders, and a host of other functions.
Opportunities for MT4 Trading
This segment examines the benefits and perks of forex trading on the Meta Trader 4 platform. These benefits can be found in its functions and they include:
1. Trading system
Since this platform was invented to seamlessly conduct trading activities, it is appropriate to consider the potential it holds to carry out various forex activities.
Generally, this platform allows the execution of orders in two modes namely pending orders and market orders. For pending orders, only when the price reaches a preset level would the order be completed.
Market orders on the other hand can be executed in any of these four modes. These executions include instant execution, request execution, market execution, and Exchange execution.
When a trader selects the instant execution order option, this means that the order would be executed based on the price displayed on the platform. One benefit of this execution model is that the trader is aware of the price at which the order was executed. Missing trades with instant execution rarely occur except due to high market volatility. And this in no way is the fault of the trader.
For request execution, the trader requests a quoted price. Upon receiving it, he has to decide whether he wants to buy or sell using the received price. A trader has several seconds to ascertain if trading with the received price is worth it.
Market execution entails the execution of the order based on the broker’s price. Even if there is a disparity between the prices displayed on the platform, the broker’s price prevails.
For the exchange execution, the order is regulated by the external execution facility (the exchange).
2. Trading Robots
Sometimes using market signals to determine the viability of trade may fail traders. Hence, they need a system that would reduce the likelihood of failed trades.
Trading robots are one of the opportunities traders get to navigate the rocky terrain of trading.
These robots are called expert advisors and they work according to an algorithm based on the parameters set by the trader. Trading robots can analyze currency quotes and execute trading operations. The good thing is that these trading robots can be procured in a variety of ways. There is the free option on the codebase and the rented or purchased version from the market. Traders can even order expert advisors from professional freelance developers.
What makes this platform the top trader’s choice is the liberty that it gives forex traders to create their expert advisors to execute trades on their behalf. Trading bots would be particularly useful in a populous city like Kuala Lumpur. The reason for this assertion is that the average resident is often on-the-go and lost in the demands of their work. Hence, they do not have a lot of time to spare to manually interpret market signals which would determine whether they should open or close a trade.
Traders that want to customize their trading robots can do that using the MQL 4 invention of the MT4 system. With this programming language, traders can create their versions of trading experts, get detailed technical indicators and test the efficacy of their invention.
Traders should note that indicators do not execute trading operations. Rather they only analyze the market situation. Unlike their inbuilt counterparts, they can execute any analytical algorithm. This programming language also enables traders to delete options from their chart, open or close positions, and place some pending orders through the script. Traders can also use these robots to test the viability of their trading strategy.
3. Financial news and updates
Often when traders make poor trading decisions, it’s due to a lack of financial information.
Although, the inbuilt indicators and detailed currency quotes on the platform are strong influencers of informed trading decisions. The role of global financial information in keeping customers abreast of various trends cannot be sidelined.
A vast majority of market shifts or volatility are caused by global phenomena. They may be due to political events or a change in the business climate of various countries. When these events happen, the MT4 platform dispenses this information to its users through SMS, Push alerts, and Email notifications. Trading conditions like exceeding the specified value by bid and ask prices are usually communicated to the trader so they can take action. Customers that stay updated would not miss favorable moments to perform a trade.
Apart from the above trading opportunities that traders can exploit, this platform offers top-notch security. Traders are assured of the privacy of their trades as there is end-to-end encryption of the exchange between them and the platform servers. Also, traders can easily navigate this platform as its user interface is simple and easy to operate. Traders using the mobile version can communicate with other traders to rub minds, and develop trading and risk management strategies.
This article has been published in accordance with Socialnomics’ disclosure policy.