What should you know about MetaTrader 4?

Are you still observing stock market fluctuations and finance trading in traditional ways still? With the advent of technology, everything has gone technical and electronic. Go electronic even with trading and financing. Make use of the electronic trading platform known as Metatrader 4. You might have come across this term as MT4. In technical world, the MetaTrader 4 is known as MT4. This trading platform has been is wide use by local retailers who can trade online with foreign exchanges and speculative trading methods or traders. The electronic platform for trading was developed by MetaQuotes Software. The project came in to working structure in the year 2005.

Through the use of the Metatrader 4 software, it helps to connect brokers who deal with foreign exchanges. These brokers provide the license of foreign exchange to the clients. The software is comprised of two components. The components are client and server. The software portion of the client component is run by broker’s customers and, while the server component is run by the broker. The client software helps the users to view live streaming of changes in the finance and stock market, show charts graphically in instant, guides to place orders and manage their accounts. The accounts are secured and are protected with safeguarded with cryptic encryption patterns.

There are clients for the software. However, the biggest among them is Microsoft Windows. The application is also based on Windows. Since, Microsoft has an ability to provide end users the flexibility of writing their own trading scripts and they, have robots which help to automate the trading. MetaQuotes has released their second version in the year 2010. It came to be known as MetaTrader 5. Nevertheless, many people still use MT4, since the acceptance of the product was slow. Even in many trading companies people still use MT4 as reliable trading software. Unfortunately, for the users of Mac operating system, they do not have any version of Metatrader 4. Some traders or brokers use their own custom developed variants for Mac OS.

Components of MT4:

The package of MetaTrader 4 includes many components in it. These are- client terminal, Mobile, Serer, Administrator, Manager and Data Centre. We describe the components of MetaTrader 4 in detail.

The first component is MetaTrader 4 Client terminal. As the name suggests, basically with the client part.It has been provided for free from the brokers. The software portion deals with the online trading and practice trading accounts. Since, trading is game of skills, this portion of software allows you to have demo accounts. The trading operations, charts or graphs and analysis of the scales are performed in real time, using this software. The language used internally is C programming language. It allows the users to perform program trading strategies, gives indicators and signals. It is said, that there are around 50 indicators which are included in the software and many others are used for customization. The software is known to run on Windows Platforms. Even, the oldest Windows versions such as Vista and XP can be used with this component of MetaTrader 4. On Linux, one can use the Wine and WineBottler for Mac.

The second component is known as MetaTrader 4 Mobile. The trading account of the user or the broker can be controlled using the mobile devices or tablets. It runs successfully on Windows Pocket PC 2002 or even on, Mobile 2003, iPhone OS and Android smart phones. The third component of this software is related to the MetaTrader 4 Server. The server is as important portion of any software application, as much as client. Hence, it is also known as the core system of the project. It is the portion, where an actual trading, analysis and schematic diagram takes place. The users request is handled to perform the trading operations. It helps to display and execute the trading. The fourth component is related to the MetaTrader 4 administrator. This component has been designed to manage the server setting remotely. The fifth component is related to the MetaTrader 4 Manager. The manager handles trade inquiries and customer accounts. The last component of the MetaTrader 4 is Data center. The data center is also similar to the server component. It is a specific proxy server that has been put in use for specialized activities. It can act as an interface between the server terminals and client terminals. Hence, it reduces the load of many requests and helps to avoid delays which are caused by many people making the requests. Hence, the load on the main server gets distributed with the help of this component.

History and products of MT4:

The developers of MetaTrader 4 are MetaQuotesSoftwares. They have released many variants and versions of MetaTrader platform from 2002. However, they clicked the success ladders in 2005 with the release of their enhanced version MetaTrader 4. In 2010, the InstaForex launched MT5. Eventually other languages were unified with the MetaEditor, such as build 600, MLQ4 and MLQ5. Now, the platform of MT4 is primarily focussing upon margin trading. Some brokers use the MT4 to trade, but this software as not been devised for full time working in the stock market or exchange trading. But, nevertheless, the MetaTrader 5 woks with equities and commodities exchange trading. Both the versions of MetaTrader – MT4 and MT5 make use of custom indicators for performing trading activities, with the help of Export Advisors. Both the versions are well equipped with automated trading too.

Types of Trading:

The MetaTrader provides two types of orders in trading. These are Pending orders and Market Orders. The Pending orders are executed when the prices reach a particular level. These levels are usually predefined. On the contrary, the Market Orders are executed in four mediums. These are Instant Execution, Request Execution, Market Execution and Exchange Execution. Under Instant Execution, the orders are executed at the prices which are displayed in the platforms. Request Execution is performed depending on the trader. If the trader requests for the price and sell or buy, then this mode is executed. With the third mode of execution, in the Market execution, orders get executed at the price displayed by the broker. Finally, in the Exchange execution mode, the order gets processed through external facility which executed the order. This external mode is also known as the exchange.

You must be logged in to post a comment