Everything You Need To Know About MetaTrader 5

Everything You Need To Know About Metatrader 4: The Best
Trading Platform For Forex

Metatrader 5 is a world-leading trading platform that allows traders to manage their portfolios, execute trades, and analyze the markets with technical indicators.

The MT5 platform offers an abundance of features for both novice and professional traders, making it the preferred choice for those who want to trade on financial markets.

With its powerful analytical tools, a broad range of tradable assets, and intuitive user interface, MetaTrader 5 provides everything traders need to succeed in the markets.

MetaTrader 5 is a platform for trading Forex, stocks, and futures. It offers an extensive library of free and paid indicators and expert advisors to help traders make the most of their trades.

Key Benefits

MetaTrader 5 is an online trading platform that enables Forex and CFD trading. The software provides traders with analytical and technical tools, as well as access to the global financial markets. It also offers a variety of features for automated trading, which is helpful for traders who want to reduce the time spent on monitoring and analyzing the markets. Let’s take a closer look at some of the key benefits of MetaTrader 5.

 

1. A Multi-Asset Environment

MetaTrader 5 is your one-stop-shop for trading across markets. The platform is perfect for users who want to create diverse portfolios. Limit your risks and boost potential profits by engaging the following instruments:

  • currency pairs (major, minor, and exotic);
  • spot metals (gold and silver);
  • stocks of the largest US corporations like Tesla or Apple;
  • CFDs on stocks;
  • CFDs on commodities like crude oil or gold;
  • CFDs on market indices;
  • CFDs on cryptocurrencies like Bitcoin or Ethereum;

The range of assets allows direct and indirect ways to benefit from shares.

 

2. Fundamental and Technical Features

When traders conduct analysis, they may focus on different aspects. These depend on the nature of each market. First, there is a range of fundamentals.

Suppose your sphere is Forex trading. You should track changes in the economics and politics of the countries whose currencies you buy and sell. For example, falling oil prices depreciate the currencies of exporting nations. Higher interest rates attract more foreign capital, so the local systems get a boost.

Overall, there are a plethora of factors to bear in mind. MT5 summarises the most important announcements for your convenience. Its economic calendar is an invaluable tool for any fundamental trader.

Meanwhile, other users expect a range of adjustable charts. Technical analysts examine price patterns. Common trajectories like the Morning Star or the Hammer show them where the price is likely to go next. The premise is that nothing is random in the market. Any movements are regular or cyclical. To see them, you need to focus on different segments of the chart.

MetaTrader 5 has a stunning number of timeframes — 21.

In comparison, there are only nine in MetaTrader 5. Traders may also choose a visualization format for extra information, such as tick volume, OHLC, last price, etc.

 

3. Flexible Order System

Market Depth allows you to get prices closest to the market. Trades and orders are registered differently. The latter is registered based on the netting method or the hedging system. All types of orders are supported, and they may be executed in four different ways:

  • Instant,
  • Request,
  • Market, and
  • Exchange execution.

Users limit their risk by setting the Stop Loss triggers. When a particular price is reached, their trades are executed automatically. There is also a changeable trigger — the trailing stop. It moves along with the asset’s market price, allowing a higher profit.

 

4. Copy Trading Features

One of AimFX products is MetaTrader 5 trade copying tool. It’s possible to connect MT5 to AimFX as a master account as well as a follower account. With this, traders can trade on one platform and mirror positions to other platforms.

 

5. Algorithmic Trading

MetaQuotes Software has developed a plethora of robots. The platform comes with a set of free EAs (Expert Advisors), and you can always buy or rent more. Now, there are over 1 700 options on the official market.

The software may work on your behalf, analyzing the market and placing trades according to preset parameters. The system will receive trading signals and execute positions while you sleep. However, EAs are not infallible, so they must be used with caution.

Why do traders use MT5?

MetaTrader 5, also known as MT5, is an electronic trading platform widely used by professional traders around the world. MT5 allows users to trade in the foreign exchange, stock, and commodity markets.

There are many reasons why traders use MT5. Some of the key benefits include its user-friendly interface, charting capabilities, and wide range of indicators. MT5 also supports automated trading, which allows users to develop custom trading strategies.

 

Trade Execution Modes

You can choose from the three trade execution modes that MetaTrader 5 offer:

  1. Instant Execution
  2. Execution on Request
  3. Execution by Market
 

Instant Execution

When you enter an Instant Execution order, the trade will be executed at the price offered to your broker. The terminal will set the current prices in sequence upon sending the trade order, but it will not be executing any order until the broker accepts the prices.

If the broker doesn’t accept the prices, your order may trigger a “requote.” After that, the order can be executed.

Execution on Request

The second type of market order is Execution on Request. Under this model, you provide your broker with the desired price beforehand, and they will attempt to execute the order at that price. If it’s not available when they try to fill the order, the broker will inform you and you can either confirm or reject the execution at that particular price.

Execution by Market

The last of the three modes you can choose from is Execution by Market. This mode relinquishes authority to the broker, who will then make decisions about the order execution price without needing any additional discussion with you, the trader. This means that you give advanced permission to the order execution at this given price.

Order Types

MetaTrader 5 also allows you to place different order requests, which are Market order, Pending order, Stop Loss and Take Profit.

 

Market orders

Market orders are made as a way to guarantee your brokerage company that you allow the buying or selling of a given security at the current price. Upon execution of such order, a trade position will instantly begin to move, tracking the various changes taking place in the actual financial markets. You can also add Stop Loss and Take Profit orders alongside the market order; the mode of execution is dependent on the security you chose to trade.

Pending order

Pending order is a commitment you make to the brokerage company, giving them the permission to buy or sell a security in the future but at a predetermined price. This order can be used when opening a trade position provided that the future quotes will reach the predetermined level.

A Stop Loss and Take Profit orders can be automatically attached to pending orders when a pending order has been activated.

 

There are four types of pending orders that MetaTrader 5 offers:

  • Buy Limit – This type of order is usually made when expecting a security price, which has recently fallen to a certain level, to increase in the future. A buy order can be executed provided that the current “ASK” price level is higher than the value of the placed order.
  • Buy Stop – When you predict that a security price, which has risen to a certain level, will only keep on rising, you can place this type of order. A buy order can be executed provided that the current “ASK” price level is lower than the value of the placed order.
  • Sell Limit – Orders made under this type are normally made when you expect a recent uptick in the security price to make a turnaround. A sell order can be executed provided that the current “BID” price level is lower than the value of the placed order.
  • Sell Stop – When making this type of order, traders usually expect that a security price that has recently dropped will continue falling. A sell order can be executed provided that the current “BID” price level is higher than the value of the placed order.

Stop Loss and Take Profit orders normally go together, but we’ll now be discussing them separately.

A Stop Loss order

A Stop Loss order can help in minimizing the losses you incur if the security price begins moving towards an unprofitable direction. If a security price reaches your set price level, the position will automatically close. They are always placed together with a market or a pending order.

 

A Take Profit order

A Take Profit order, on the other hand, is intended for gaining profits. When a set level for profits has been reached, the position will automatically close. It is always connected to an open position or a pending order and can only be placed together with a market or a pending order.

 

Advantages of MetaTrader 5 over MetaTrader 4

While MT4 and MT5 are the world’s most popular trading platforms, MetaTrader 5 does have some unique benefits:

  1. Simpler, easier to use, and improved interface.
  2. New, customizable units of time and measurement are available.
  3. An economic calendar is integrated into the platform.
  4. A brief history of automated orders is viewable directly on an index’ chart.
  5. The history of the market (like an order book).
 

MetaTrader 5 also has performance and optimization upgrades over version 4:

  1. Quicker, more stable connection to servers.
  2. Greater platform stability than MT4.
  3. Faster and more accurate order execution.
  4. Hedging allows you to cover your positions.
  5. Available on PC, Mac OS and iOS, Android, and through every supported browser.

Not only is MetaTrader 5 newer and vastly more powerful than MetaTrader 4, which is older but, now, more widely used, MT5 has more advanced functionality mainly due to the technological evolutions that the MetaQuotes developers have developed. In general, EA traders prefer MT4, while manual and discretionary traders prefer MT5