Trading MT4: The Ultimate Guide
- MetaTrader 4 is the most popular and widely-used trading terminal for retail traders globally
- The platform offers simple functions like 1-click trading to complex ones like automated trading
What is MetaTrader 4 (MT4)?
When it comes to trading, it’s virtually impossible to unseat MetaTrader 4 as the most popular and widely used trading platform. Every trader, during their journey in the financial markets, has at least for a while been immersed in the depths of MetaTrader 4.
With this in mind, the platform has been around since 2005 when it was developed by MetaQuotes and released to the public shortly after. It quickly gained traction due to its many benefits, wide range of markets, customizable features, and even automated trading by algorithms.
Presently, almost 20 years later, MetaTrader 4, or MT4 for short, is the go-to choice for novice traders and expert market participants alike. With it, you can trade forex pairs, stocks, commodities, cryptocurrencies, and many more financial assets.
Moreover, you can develop your trading strategy by using trading setups and operations, and advanced charting methods. Let’s dive in and find out how you can make the most out of the financial markets by using MT4.
Trading with MT4
Trading with MT4 is straightforward and relatively easy due to its user-friendly interface and intuitive design. Once you sign up for an account with MT4, you will be sent directly into the platform where all operations will be available.
It’s worth noting that the software comes without any charges and all of its features are available to use for free. Now that you’re in, the first window you see is your default page with some key elements. For example, the quote sheet on your left, called Market Watch, displays financial assets available for trading. Double click on any one of them and it will bring up an order page.
Further, you would see a graph, or a number of graphs, in the center. These could be customized in relation to timeframes and chart types, and you can add to the volumes or indicators.
Additionally, you can activate 1-click trading which would allow you to instantly place a trade. You can go short with your trade, ie, profit from a decline, or long, ie, profit from a move higher.
Basic functions of MT4
MT4, being the most known trading terminal, allows you to quickly and efficiently go through its many functions. Specifically tailored to enable you to easily navigate around, MT4 brings you a rich choice of functions located in its menu:
A single click on the File tab will bring up new profiles and charts and the option to connect to trading accounts.
This is the place where you can customize your trading space and change language, and customize toolbars and windows.
Here you can find a wide selection of indicators, graphics, texts, etc.
The Charts tab will allow you to play around with chart settings and parameters, add or remove objects, zoom in or out, and select timeframes.
The Tool menu enables you to work with new orders, quotes archive and access general settings.
Similar to View, the Window tab brings up the default windows displayed on the default page. In addition, you can see those left out and easily bring them forward into your main workspace.
This contains the user manual where you can get some more information regarding the platform.
How to Trade Forex with MT4
Trading forex with MT4 is done through a simple and straightforward process. With the easy step of using the ‘Order’ window, you can open a trade and enter the world of financial markets. You can go through the list of available currency pairs and select the one you want to buy or sell.
Then, click on ‘New Order’ on the MT4 toolbar, and the window to place your trade will open. Your options here would be to ‘Sell by Market’ or ‘Buy by Market’.
Open a Forex Trade with MT4
The Order window gives you the characteristics of your trade:
- Symbol: the currency pair you are looking to trade;
- Volume: the number of units you want to buy or sell;
- Stop Loss: the level at which your position will automatically close if the market turns against you;
- Take Profit: the level at which your position will automatically close if the market moves in your favor;
- Comment: anything you’d like to highlight or comment on related to this trade;
- Type: the dropdown menu will show you the type of your order. It could be executed immediately at the current market price, or it could be executed at a desired level, specified by you.
Enter a short position
Going short, or short selling, is the act of selling a financial asset, in this case, a currency pair, and profiting from the decline. The way you enter a short position in MT4 is to simply click on the ‘Sell by market’ button after you’ve customized your trade with the above parameters.
Enter a long position
Opening a long position, or going long, with MT4 can be done with the click of the ‘Buy by Market’ button in your trading window. Before that, however, you need to define your trade parameters.
How to Trade Crypto & Other Assets with MT4
Trading crypto and other financial assets like indices, gold, silver, oil, etc, can easily be done on MetaTrader 4. All you need to do is go to the Market Watch window on the right and select the asset you want to buy or sell. You can then right-click on the symbol and select ‘Chart window’. You’ll be taken to the chart of the specified asset. From here, you can enter both long or short position.
Using Charts With MT4
Using the charts in MetaTrader 4 is intuitive and allows you to monitor your trade’s performance in real-time. This said, the chart setup, including indicators, volumes, lines and other elements, will depend entirely on you.
In other words, you will have a wide array of chart features, all available and ready to boost your trading analysis.
Additionally, you can use various chart types like a candlestick chart, a line chart, or a bar chart. Simply click on the respective icon i the toolbar above the chart and select the one you prefer.
Benefits of Trading with MT4
MetaTrader 4, as the most popular and widespread trading terminal for retail traders, offers a number of benefits, including:
Ease of access:
MT4 is free for everyone. Once you fund an account with your own money, you are able to take a deep dive into the platform and explore its many features and functions. It is available across devices such as PC, Mac, iPhone, or Android. In other words, you can access your account from any device.
Simple and intuitive:
The MT4 platform is designed in a way that would accommodate anyone from a novice trader to an experienced professional in finance. Installing it is easy and the user-friendly interface can be a breeze to go through.
Ability to customize:
A huge benefit of MT4 is the ability to work with its functions in a variety of ways. You can customize windows, settings, layout, and more, in order to suit your needs and goals.
For the more advanced users, MetaTrader 4 offers sophisticated functions like automated trading using your own algorithms. Additionally, relatively simple operations like placing stop loss orders and take profits orders are also possible.
Opening your positions with MetaTrader 4 can happen with a single click. If you see a move happen right before you and you need to be quick, the one-click trading function will make sure you’re in the market as quickly as possible.
MetaTrader 4 is perhaps the most efficient and complete trading platform. On the one hand, it allows a novice trader to gradually develop trading skills without too much hassle or complications. On the other hand, MT4 enables an experienced trader to improvise and experiment with self-developed strategies, automated trading, and enhanced charting operations.
Overall, the many opportunities offered by this trading terminal are sufficient to help you achieve your trading goals. Whether you are a newcomer to the financial markets or a seasoned professional in the field, MT4 can confidently meet your trading needs and expectations.
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