The forex trading market remains open for 24 hours a day. This means that you can make a lucrative income from this platform at any time. To be part of this great and lucrative activity, you must improve your trading skills.
One of the ways to position yourself for profits is by using handy tools such as MetaTrader 4. But what is MetaTrader 4 and how does it help traders? This post looks into this and other useful tips of using MetaTrader 4 in online trading.
What is MetaTrader 4?
Metatrader 4 or MT4 is an online trading platform used by traders and brokers across the world. With the help of a financial mediator, traders and investors can run their market positions by either closing or opening trades as may be necessary.
Although many traders use MT4 for foreign exchange trades, its developers designed it in a way that is fit for various trading programs dealing in financial market analysis, forex, CFDs and futures markets.
Why use MetaTrader 4?
- User-friendly interphase
One of the reasons why you should use MetaTrader 4 is because it offers you easy integration interphase. It is possible to sign into different trading accounts while on this platform. This allows for easy account monitoring with everything in one place.
- Expert market analysis
Another reason to use MetaTrader 4 is that it provides you with expert market analysis and advisory. From this platform, you can improve your forex trading experience by hedging on the trade signals and analysis given by experienced advisors and traders.
- Various trade modes
Another reason why traders opt for MetaTrader 4 is the availability of various trade modes. This, in addition to two markets, up to 4 pending orders, a trailing function and 2 stop-orders. There are other useful provisions such as the quick trading which allows you to customize your trades by enabling the one-click trade on the charts.
Metatrader 4 Trade Execution Modes
Metatrader 4 offers different trade execution modes. These are;
- By request
- By market
- Execution by request
This mode allows for the execution of market orders at previous prices as indicated by the broker. In this mode, traders request for prices from the brokers before sending an order as per the market requirement.
Once the prices are available, MT4 executes the trade using the given price.
- Instant execution
As suggested in the name ‘instant’, orders in this mode are executed at the price that has been tendered to the broker. All the trending prices are set in a sequence and execution happens when the broker accepts the prices.
- Execution by market
In execution by market, the trader designates authority to make further decisions regarding the execution price to the broker.
Risks associated with MetaTrader 4
While its benefits are wide and varied, MT4 has several drawbacks that can put your online trading investment at risk. Here are some risks to be wary of. Go through them to avoid regretting the decision to use MT4.
Real-time changes may take time to reflect on the platform
As a forex trader, you must be aware that the exchange rates vary depending on among other things, the economic status of different countries. As such, something like press release can cause unexpected changes in the rates and so on.
Such real-time updates might take time before reflecting on the MT4 platform; you could end up making the wrong investment moves.
You may not reap big gains even when they are very certain
Because the platform runs on some preset rules and guidelines, these very rules might tie you down and prevent you from making some profitable moves even when they are sure and right in front of your eyes thanks to the limited flexibility.
The platform is limited to some operating systems
Metatrader 4 runs on major operating systems. To use the platform, you, therefore, have to use a device that runs on either the android, Microsoft or Ios.
Even with a few risky possibilities, MetaTrader 4 remains an ideal option for both seasoned and newbie traders. Being easy to integrate and customize, MT4 enables you to manage all your trades without spending too much time or effort.
This is a sensible pathway to a successful trading journey.