SINCE its introduction, Metatrader 4 helped change a lot of people’s attitude towards the foreign currency markets. With thousands of companies and retail players relying heavily on it for their day-to-day transactions, Metatrader 4 is among the most popular forex trading platforms in the market today. It has both a desktop and mobile versions.
Metatrader 4, also known as MT4, is a complete trading platform because the system doesn’t just work for foreign exchange trades but also for the futures and CFD markets as well. It is developed by the Russian-based (although Cyprus-registered) Meta Quotes Software Corp and was launched in 2005. Although company recently released an upgraded version however most users still prefer Metatrader 4 over the newer Metatrader 5.
Metatrader 4 platform actually consists of 2 main parts. The first is the client software which can be downloaded into any machine running on a Windows Operating System (OS). This software is used by end user traders and investors to make trades in the comfort of their own homes, offices or anywhere they choose.
The second part of Metatrade 4 system is the server component. This is run by the broker who can customize or tweak the platform to suit its own internal recording and trade monitoring system. Metatrader 4 has an Application Programming Interface (API) which allows it to smoothly integrate with a broker’s existing system.
Metatrader 4 server component also houses the following crucial elements:
1. Metatrader 4 Manager – This handles trade processing, risk management, back office operations and dealing desk
2. Metatrader 4 Administrator – This handles all server parameters and settings of the entire trading platform
3. Metatrader 4 Data Feeds – This is responsible for the delivery of quotes and crucial market news and updates that traders see on their screens
Metatrader 4 works by allowing traders to buy and sell different kinds of currencies at a click of a mouse anytime, anywhere. The software also has a wide range of functionalities that help brokers and investors make quicker investment decisions by generating relevant charts for technical analysis, automated alerts for stop trading, forecasting and other sophisticated indicators. Metatrader 4’s popularity owes to the fact that is so easy to install and painless to operate, very reliable and bundles a lot of features for new and veteran traders alike.
Getting started with Metatrader 4
Installing Metatrader 4 is not difficult as the software is designed to operate on a Windows operating system. It just takes a few seconds to complete the entire installation process. Users just need to download from Metatrader 4 site the installer program and run it on their computers.
Once installed, a trader opens an account with the broker and places a deposit. Metatrader 4 gives the user also the leverage options ranging from 1:1 to 1:100.
One of the best things about Metatrader 4 is that it is so easy to operate eliminating the need for any specialized training. All the basic trade commands and functionalities are just one or two clicks away. Executing a currency trade with Metatrader 4 can be done in various ways.
Placing an order using Metatrader 4 is easily accomplished by clicking on a particular currency pair in one of the windows or choosing a specific currency pair chart. A trader then chooses how many lots are to be sold or bought. Metatrader 4 also gives the option on whether to execute the order immediately or put it on pending status.
Users can also set Metatrader 4 to certain profit targets or loss thresholds using the stop loss functions. Traders with higher tolerance for risks can also enable any deviation from the quoted price to maximum levels.
Another very useful feature of Metatrader 4 is the wide variety of market indicators readily available to the trader. For beginners and intermediate traders, the MT4 provides lots of technical analysis charts, currency and global market news, historical data and other charts. The more experienced traders can easily create customized reports and charts. Metatrader 4 also show Fibonacci ratios as well as other methods to detect pattern and trends.