Let’s start with an obvious assertion; the forex market is an incredibly vast entity, and one that sees an estimated $6.6 trillion traded globally every single day. This market is also worth an estimated $1.934 quadrillion, which is more than 2.5x the size of the world’s GDP.
Interestingly, a large number of traders continue to access the market using the MetaTrader 4, which first entered the sector in 2005 and has remained the single most popular trading tool despite the launch of the MT5 as long ago as 2010.
In this post, we’ll look at the key functions and trading instruments associated with the MT4, while asking what sets it apart from its rivals.
A Look at the Indicators on Offer
One of the key benefits of the MT4 is its user-friendly nature, which has helped it to become so familiar and popular across the globe.
You can access all of the key sections through a single interface, for example, with the all-important indicators category listed at the very top of the platform.
Here, you’ll find the platform’s best technical indicators, including the Moving Average Convergence Divergence (MACD). This is effectively an insightful trend indicator, which openly demonstrates the relationship between two moving averages of prices and leads to more informed decision making as a result.
Not only is this clearly displayed, but it’s also relatively easy to calculate too, as you just subtract the 26-day Exponential Moving Average (EMA) from the 12-day EMA. This can also work as a strong sell or buy indicator for traders, so it’s definitely an influential tool for anyone looking to achieve a short-term profit.
Interestingly, the on-balance volume (OBV) indicator is also one that should interest traders, as this can be applied to gauge the positive and negative flow of volume in your chosen security.
This is also a free and widely accessible indicator, and one that helps you to understand volume and pricing within a predetermined period of time.
The Other Advantages of the MT4 and How to Get Started
The MT4 is also ideal for undertaking automated trading, which allows for informed and high-frequency trading within a short space of time.
This is now more accessible than ever before thanks to the MT4, with a rising number of individual traders using robots and Expert Advisors (EA) to inform orders and receive trading signals.
There’s also a thriving MQL4 community, which has created a vast network of investors and arguably created a social trading model first pioneered by eToro and TradeO.
This creates a unique opportunity to follow successful traders and effectively replicate their orders, laying the foundation for sustained success in the short and longer-term.
To get started, you can download the MT4 via a regulated broker to your chosen device. Android users can simply download the app from the Google Play Store, for example, while iPhone users will find the platform listed in the App Store.
However, you can also download different iterations of the software from specific brokerage firms, depending on your outlook and the precise markets that you intend to target.
Then, you simply need to login and click through the ‘order’ window to place orders on the marketplace, choosing available currency pairings (or other securities) through the market box in the top left-hand corner of the screen.
You can simultaneously use customisable charts and your preferred technical indicators to refine your decisions, before hopefully banking a profit in the short, medium and potentially longer-term.