Latest update February 18th, 2020 11:59 AM
MetaTrader 4 Platform Explained to a Beginner Forex Trader by AlfaTrade
There are trading platforms that serve as the virtual interface for buying and selling currencies, a process also known as Forex trading. Among the few dozen platforms you’ll find being used today by both amateur and professional traders alike, MetaTrader 4 is bound to pop up more than once in your survey. MT4 has grown to be one of the staple trading platforms in the Forex market thanks to a myriad of features it provides. Here is a guide to using MT4 and an overview of why it is a vital tool to trade the foreign exchange market.
What is MT4?
MetaTrader 4 is a platform created and updated by MetaQuotes Software. It is specifically designed for trading currencies, but is also an active platform for CFDs and futures contracts. The platform can be downloaded and installed directly from MetaTrader4.com, a dedicated website managed by MetaQuotes. If the site is unavailable, you can downloaded a mirror from different established Forex brokers, such as AlfaTrade. Be sure to read the license terms and conditions before starting the installation process.
How it Works
After downloading and installing your MetaTrader 4 successfully, you’ll be able to start trading with the platform on your computer. When opening trades, you have the option to perform all order executions with a single mouse click. If you do not check the box that pops up after your first trade which asks you if you want to activate the One-Click option, you’ll have to do the next trades manually, which involves manually inputting details of the trade including Long/Short, lot size, stop loss, profit limit, and type of execution, whether it’s a Market or Limit Order.
Why is MT4 Important?
There are many advantages to familiarizing yourself and continuously using MetaTrader 4 for executing and managing trades. For starters, the user interface is relatively simpler than other platforms. The login process can be cut short due to the program’s ability to remember your username, password, account type, and server from your previous login. With one click of the application on your desktop page, you are instantaneously logged in and ready to trade. There are also no pop-up screens and, depending on your chart settings and format, all important tabs can be located on the top portion of the screen for easy navigability.
Other Benefits of MT4
Aside from simplicity, MT4 also integrates other useful features that are invaluable to a trader’s success. The language settings, for instance, can be set to match the native language of the user, so users around the globe can use the platform as efficiently and accurately as English-speaking traders. Expert Advisors is another important feature at the core of MT4’s software. It allows traders to automate their trading strategy with a customized expert advisor that best addresses their needs and objectives. By automating a trading strategy, you don’t have to be in front of the computer screen 24/5. In fact, you don’t even need to have the computer switched on.
Tips When Trading With MT4
While impressively useful in its own right, MT4 is not the sole factor that will decide your fate in the markets. How you use it will be key differentiator to success or failure. When using MT4, tweak the default settings so it’s easier and more comfortable for you. The currency charts, in particular, can seem too dull or too confusing at its default setting, but by tweaking the colors of the candlesticks and grid, it can be easier to view and interpret the information being provided by the markets. Another tip is to create a trading plan or blueprint for trading the Forex market. Never trade without having clearly defined stop losses and profit targets. Lastly, make sure you have an MT4 installed on your mobile phone. This gives you complete access to price charts, data, indicators, and currently open positions wherever you go.
Final Notes
MT4 is undoubtedly a robust platform that merits exaltation. It’s a tested and proven program that can match even the most expensively built proprietary platforms offered by brokers and investment banks. Of course, it requires enough experience in online trading to become a genuine expert in MT4 and the partnership of a good forex broker like AlfaTrade. Only then you can leverage the feature-rich platform that is MT4.
