MetaTrader 4 (MT4) is a trading platform particularly used in Forex trading but can also be used in other financial instruments like cryptocurrencies, commodities, futures, CFDs, and indices. This popular trading platform has been around since 2005 and it was created by Meta Quotes with an aim to become the world’s leading trading platform for Forex trading, boosted with all the necessary trading tools. After 5 years, Meta Quotes once again released a powerful trading platform known as MetaTrader 5. But despite its powerful features and tools, MT4 has remained the favorite of many Forex traders. As a matter of fact, it will be very hard to see a broker who isn’t offering this trading platform.
Overview of MetaTrader 4
Wondering why MT4 remains to be one of the most popular trading platforms? It all boils down to its user-friendly interface that provides traders a good opportunity to become profitable despite the little knowledge they have about the technical aspects of trading. In short, even new traders will find this trading platform to be efficient and very easy to use.
MT4 is a trading platform that allows you to easily manage and execute your trades in the market. More so, this trading platform supports different kinds of order types and trade execution modes. It also has this very convenient feature in which you can execute trades directly into the chart just with a single click.
Trade Execution Modes in MetaTrader 4
There are three trade execution modes offered in MT4 – The Execution by Market, Execution on Request, and Instant Execution.
Instant Execution – is an execution that is being made at the price which is offered to the Forex broker. once the broker agrees with the price, the order will then push through. If the broker disagrees then a ‘requote’ will happen. Requote is when the broker returns the prices into which the order can be successfully executed.
Execution on Request – is an execution in which an order is made with the price which was previously received by the broker. In this case, the prices of the order are being approved first by the broker before it gets executed.
Execution by Market – is an execution that gives the brokers the permission to make a decision pertaining to the price of the order execution without the need to discuss the decision with the trader. Such order execution means that there is advance consent to execute an order at a given price.
Order Types in MetaTrader 4
Market Orders – are orders that have a direct commitment to either buy or sell a particular security.
Pending Orders – are orders in which the clients are committed to buy or sell particular security in the future at an already predefined price. In MetaTrader 4, there are 4 types of pending orders – the Buy Limit, Buy Stop, Sell Limit and Sell Stop.
Stop Loss Order – are orders in which a trade gets automatically closed out whenever a particular price is reached.
Take Profit Order – are orders that automatically close a trade whenever a price has been reached at a certain level.