What is MT4?

MetaQuotes created the trading platform known as MetaTrader 4 (MT4) in 2005. MetaTrader 4 is primarily linked with forex trading, however it may be used to trade CFDs on a variety of markets, such as commodities, indices, cryptocurrencies, and forex.

Because of its widespread use by traders and the abundance of third-party scripts and advisers available on it, the MT4 platform was introduced by several brokerages as an optional replacement for their standard trading software between 2007 and 2010.

MT4’s great customizability to suit your unique trading preferences is one of its main draws. It can also be used to automate trading by employing algorithms that, in accordance with a set of predetermined parameters, open and close deals on your behalf.

Defining MetaTrader4

MetaTrader 4 is the trading platform of choice for millions of traders with a diverse variety of needs. The platform gives plentiful of options to traders of all skill levels: comprehensive technical analysis, flexible trading system, algorithmic trading and Expert Advisors, as well as mobile trading applications.

MetaTrader 4's capabilities are expanded by signals and market-related extra services. You can mimic other traders' transactions with the Signals service, and you can purchase several Expert Advisors and technical indicators from the Market.

Functions of MT4

The client terminal has an integrated editor and compiler as well as access to a free software, article, and help library. The software allows traders to create custom indicators, scripts, and expert advisors using the proprietary MQL4/MQL5 scripting language. The main reason for MetaTrader 4’s appeal is because it encourages algorithmic trading.

Pending orders and market orders are the two kinds of trading orders offered by MetaTrader 4. Orders that are pending will only be filled when the price hits a certain threshold. There are four different ways that market orders can be executed: instant, request, market, and exchange:

• If the order is completed instantly, it will be executed at the price that is shown on the platform. The order will be fulfilled at a known price, however, if there is a lot of volatility and the desired price is not available, a good trading opportunity may be lost.
• The request execution mode can complete a market order in two steps: first, they can request a price quote, and then they can use that price to determine whether to buy or sell. It takes a trader a few seconds to determine whether the received price is worthwhile to trade.
• Orders executed via market execution will use the broker's pricing, regardless of whether it differs from the price shown on the platform. This mode has the benefit of allowing trading without any kind of requotes. However, amid erratic price swings, divergence might increase significantly.
• In Exchange execution mode, the order is processed by the external execution facility. The trade is executed according to the current depth of market.

Components of MT4

• MetaTrader 4 Client Terminal - Provided free by brokerages for real-time online trading and as Demo accounts. This provides trade operations, charts and technical analysis in real time.
• MetaTrader 4 Mobile - controls a trading account via mobile devices such as mobile phones or PDAs.
• MetaTrader 4 Server - the core of system. Designed to handle user requests to perform trade operations, display and execution of warrants. Also, sends price quotes and news broadcasts, records and maintains archives. Works as a service. Does not have a separate interface.
• MetaTrader 4 Administrator - remotely manage the server settings.
• MetaTrader 4 Manager - handle trade inquiries and manage customer accounts.
• MetaTrader 4 Data Centre - a specialized proxy server and can be an intermediary between the server and client terminals. It reduces the price quote sending load on the main server.

How to use MT4

Create an account

To use MT4 with brokers, you’ll first need to create a live account. Next you can set up a live MT4 account from the brokers’ dashboard.

Download MT4

You have to download MT4 after you have created an account on the device you are going to use. The broker will provide you with your log in credentials.

Open a position

When you ready to start trading go to ‘tools’ and click ‘new order’. You’ll be presented with the order window. Depending on what type of trade you are placing, you’ll then be faced with the following options:

• Instant execution which will enable maximum deviation from the quoted price. To place your trade, click ‘buy’ if you think the market will rise in value, or ‘sell’ if you think it will fall.
• For a pending order, choose the type of order you want to place, from ‘buy limit’, ‘sell limit’, ‘buy stop’ and ‘sell stop’. You need to select the price level at which you want your order to be triggered. Next you need to check the expiry box to specify a date and time for your order to expire if the market does not reach your ‘at price’. Lastly you clink on ‘place’ when you are ready to place your order.

Monitor and close your positions and pending orders

To monitor your open positions and pending orders open the ‘terminal’ window by clicking ‘view’ in the toolbar and selecting ‘terminal’. Navigate to the ‘trade’ tab. You can close a position or delete a pending order by clicking the small ‘x’ on the far right of the profit column.

Modify stops and limits on open positions

To modify stops or limits on open positions and pending orders, you do the same as in the previous mentioned steps.

Customise MT4 charts

There is a number of tools available to use to customise charts. You can draw on the charts, add indicators or change the timeframe.

• Draw on charts

To draw on charts, you simply select the object from the toolbar and click on the chart. You can adjust the width and positioning of some objects by moving your mouse as you click on the chart, while others open a separate window in order to do so.

If you want to remove or edit an object, right click on the chart then select ‘objects list’ from the menu. A window will open that displays a list of all the active objects shown on the chart. Select the one you want and click ‘edit’ to customise the indicator settings or ‘delete’ to remove.

• Add indicators

You can also add indicators to charts by simply dragging your chosen indicator from the ‘navigator’ window and drop it on top of a chart. A window will open where you can customise how the indicator is displayed.

You also have the option to add indicators to a selected price chart using the menu bar. Just click ‘insert’ then ‘indicators’ and choose your chosen indicator from the drop-down menu.

You can right-click inside the chart window and choose "indicators list" from the menu in order to change or remove an indicator that is currently displayed. This will cause a popup to open with a list of every indicator that is currently displayed on the chart. Choose the desired indicator from the list, then click "edit" to change the settings or "delete" to remove them.

• Change timeframe

A price chart's timeframe can be altered by performing a right-click on the chart, selecting "timeframe," and then selecting the desired option from the drop-down menu. The time intervals vary from one minute to one month. Using toolbar buttons, you can easily alter the timeframe of a chosen price chart.

Set up a price alert

Go to the "alerts" tab after opening the "terminal" window to set up a price alert. Within this window, use your right mouse click to bring up the "create" menu. By doing this, the "alert editor" window will open, allowing you to modify your price alert.

View your trade history

To view your trade history, enter the ‘terminal’ window and navigate to the ‘account history’ tab. By right-clicking inside the window and choosing one of the following choices, you can modify the date range. You can choose all history, last three months or last month. You also have the option to choose a custom period where you can type in a date range.

Download trade reports

Simply navigate to the ‘terminal’ window and go to the ‘account history’ tab. Right click within the window then select the option to either ‘save as report’ or ‘save as detailed report’.

Both options will produce a report detailing individual trades plus an account summary. The detailed report includes additional metrics such as drawdown and profit factor.

Pros and Cons of MT4

Conclusion

MetaTrader 4 (MT4) is simply a trading platform used by tons of traders and brokers. It is used by traders to view real-time currency prices, open or adjust orders, and get technical and fundamental analysis. On the other hand, brokers use the MT4 platform to reach a broader audience.

The most positive trait about the MT4 platform is that it offers many currency pairs and indicators that you can choose from to trade in. Its customizable charts are very beginner-friendly. Mechanical traders can also plug in their EAs in the MT4 platform. This makes it easy for them to track trade opportunities.

You can install the platform on many devices although the MT4 platform can’t be accessed through a website.