How To Trade with MT5

MetaTrader 5 (MT5) represents the latest offering from MetaQuotes, succeeding the widely acclaimed MetaTrader 4 (MT4). MT4 was designed primarily for forex trading, whereas MT5 is structured to support a broader range of asset classes.

With a selection of robust and efficient new features, along with useful trading tools and resources, MT5 has emerged as the premier multi-asset platform for today's trader.

Many brokers provide the robust MT5 platform to their traders, enabling them to engage in trading a variety of assets, including CFDs on forex, stocks, commodities, indices, futures, energies, and cryptocurrencies. This platform offers flexible leverage, along with the advantages of no re-quotes, no price rejections, and zero slippages. In this article, we learn how to trade with MT5.

One of the MetaTrader 5 platform's primary advantages is its flexibility, allowing you to engage in trading activities from virtually any location and at any time, all from the convenience of your smartphone or tablet.

It has a web version that is accessible on both mobile and desktop browsers. There is also a downloadable mobile MT5 App platform that is compatible with both Android and iOS mobile devices. This provides the convenience and flexibility to trade from anywhere. Additionally, you can log in to various platforms using a single set of login credentials.

The MT5 platform provides a comprehensive suite of trading tools, including trading robots, signals, and copy trading, all accessible from one trading platform.

How To Use Metatrader 5

To experience the full power of MT5 keep the following in mind:

Educate yourself

MetaTrader 5 is equipped with many trading resources and features that are intended to improve your trading activities. It is crucial to possess a comprehensive understanding of the platform's features and their practical applications in order to fully leverage its capabilities. You will be able to fully leverage the raw power of the MT5 platform by taking the time to educate yourself on all of the available functionalities of this intuitive platform, which include numerous trading tools, indicators, and graphical objects, as well as six distinct order types, multiple automated strategies, and market depth. All seven asset class types are available.

Requirements To Install MT5

There are minimum requirements in order to install MT5, which are:

• Windows 7 Operating System or higher (64-bit system recommended)
• Pentium 4/Athlon 64 processor or higher (All modern CPUs should be able to support this)

If you intend to be a heavy user, you could consider more powerful hardware options.

How To Trade with MT5

There are several ways to place an order on MT5:

• Click on Tools on the Menu bar and select ‘New Order’
• Press F9 for one-click trading on the chart of your favourite asset
• On the Market Watch window, double click on the asset you wish to trade
• Right-click on the Trade tab on the lower terminal and select ‘New Order’

When you apply any of the above options, the ‘Order Screen’ will pop up. The screen will have a tick chart on its left side and customisable order details on the right. The tick chart displays the bid and ask prices, and thus, the real-time spreads.

The order details on the right are:

• Symbol, which is the asset you wish to trade, such as the GBPUSD currency pair.
• With the Order Type, you can choose between Market Execution and Pending Execution order types.
• The volume is the quantity (in lot sizes) that you wish to trade, of the selected underlying asset. On a standard account, 1 lot size is the equivalent of 100,000 units.
• Stop Loss and Take Profit orders can be attached to all your trades. Stop loss helps you to curb your maximum loss when the asset price moves against you, while take profit orders allow you to book profits when the asset price moves in your favour.
• The comment section is ideal for traders who want to document their trading activities and you can add any notes regarding any trade here.

Steps To Follow to Trade On MT5?

Trading on MT5 is a straightforward process. Here's a step-by-step guide to get you started:

Choose a Broker

Choose a broker that offers MT5 as its trading platform and open an account with the broker.

Download and Install MT5

Next you need to download and install the MT5 platform on your trading device.

Choose an Instrument

Choose the financial instrument or asset you want to trade.

Plan Your Strategy

Decide whether you want to enter the market at the current market order (price), set a specific price for entry (limit order), or enter when the market reaches a certain price level (stop order or trailing stop order).

Place Your Order

Place your order by clicking on the "New Order" button on the platform's toolbar. You could also press F9 to open the order creation window. Then you specify the asset you wish to trade, the order type, the trading volume, and set stop loss and take profit levels if desired.

Execute The Order

When you have filled in the necessary details, click either the "Sell" or "Buy" button to execute your order.

Monitor Your Positions

Monitor your open positions by using the Trade menu, which is situated at the bottom of the Terminal window. Based on your trading strategy and market conditions, you have the flexibility to adjust or close your positions as necessary.

Close Your Position

When the market hits your established profit target or stop loss level, it is sensible to close your position to lock in your gains or mitigate your losses.

Order Types on MT5

You can trade your favourite assets using 2 order types, namely Market order and Pending order.

A market order represents an order to buy or sell an asset at the prevailing market price. The transaction will be processed immediately. A pending order refers to an instruction to purchase or sell an asset at a specified price at a later date.

There are 6 pending order available on the MT5 platform:

• Buy Stop – an order to buy an asset at a price that is higher than its present value, with the expectation that the trend will continue to increase once the price is reached.
• Sell Stop – an order to sell an asset at a lower price than its present value, with the expectation that the trend will continue to decline once the price is reached.
• Buy Limit – an order to buy an asset at a reduced price in anticipation that the asset's value will increase after it has reached a specific price.
• Sell Limit – an order to sell an asset at a price that is higher than its current value, with the expectation that the asset's price will decrease after it has reached a specific level.
• Buy Stop Limit – a combination of buy limit and buy stop orders that are intended to prevent slippages. After establishing a buy stop limit at a price that exceeds the current asset price, a buy limit order will be executed when the stop was reached.
• Sell Stop Limit – a combination of sell stops, and sell limit orders designed to eliminate slippages. You set a sell stop limit at a price below the current price, and when achieved, a sell limit order will be placed.

If you apply stop loss and take profit orders, your trade positions will be automatically closed when they are triggered. You can also manually close the positions at any time.

Fundamental Analysis on MT5

Fundamental analysis is the examination of the ways in which demand and supply forces of any underlying asset are influenced by a variety of economic, social, and political factors. The MetaTrader 5 platform has made it significantly simpler to conduct real-time fundamental analysis. Inbuilt tools, such as an Economic Calendar and Financial News, are accessible immediately from the platform.

Financial News provides access to a variety of global newsletters that contain excerpts pertinent to various tradable financial assets, as well as significant economic and political news from international news agencies.

In terms of the economic calendar, traders can monitor the real-time releases and forecasts of significant economic and political events that are expected to have an immediate impact on financial assets.

Additionally, MetaTrader 5 for mobile includes a news pane and a distinct Tradays (forex economic calendar) integration. The mobile version of the Economic Calendar is accessible in nine distinct languages and includes alerts to assist traders in monitoring their preferred fundamental events.

Technical Analysis with MetaTrader 5

Technical analysis is a critical component of online financial asset trading. Technical analysis is fundamentally concerned with the identification potential price patterns that are likely to occur in the future. MT5 offers an exceptional platform for technical analysts to conduct comprehensive price analyses on a vast array of assets. There are 38 technical indicators, 44 graphical objects, 21 timeframes, and the capacity to add an unlimited number of charts to your trading space.

Indicators are mathematical instruments that facilitate traders' comprehension of price action. Indicators are automatically applied to MT5 charts, and they have been categorized into a variety of categories to facilitate their application. These organizations comprise the following:

• Trend
• Oscillators
• Volume
• Bill William’s tools
• Custom indicators

Pros and Cons of MT5

Conclusion

MT5 is a trading platform that is adaptable and supports a wide range of financial instruments, such as Forex, equities, futures, and CFDs. It is crucial to acknowledge that MT5 is more intricate than its predecessor, MT4, which may necessitate that beginner traders allocate time to acquaint themselves with its workings.

Nevertheless, MT5 provides a variety of benefits for all traders, including the capacity to trade across multiple asset classes, including stocks, indices, commodities, and cryptocurrencies, as well as advanced trading tools for the development of precise strategies.

Additionally, MT5 provides a comprehensive set of resources and enhanced charting capabilities. This adaptability offers traders a more extensive selection of alternatives to diversify their trading endeavours.