Access to the forex market is important to forex traders. With billions of transactions done daily in the market, opportunities to make profits are immense. This is where trading platforms come in. Trading platforms are what gives traders access to the forex market. They are where you do your research, plan your trades, and execute your trading strategy. The most commonly used trading platforms are Metatrader 4 (MT4) and Metatrader 5 (MT5). Today, we are going to be taking a look at Metatrader 5.
What is MT5?
Launched in 2010, Metatrader 5’s function, as mentioned above, is to provide traders access to the forex market. The MT5 came after MT4, which was released in 2005. The MT5 is an improvement from MT4. It came with new features, trading tools and accommodates the trading of more financial assets. Some of the different financial assets are; Forex, Stocks, Commodities, Cryptocurrencies, Indices, and Futures.
How To Access MT5?
Getting set up on MT5 is quick and easy. There are several different versions of MT5 available, depending on the device you want to use.
- PC – You can access MT5 on any PC that uses the Windows Operating System (Windows 7)
- Mac – You can access MT5 on any Mac that uses the correct Operating System.
- Web Platform – You can use MT5 on any web browser and in any operating system (Windows, Linux, Mac).
- Android – You can download MT5 onto your mobile or tablet from the Google Play Store.
- iOS – You can download the mobile version of MT5 onto your iPhone or iPad from the Apple Store.
It is important to check that your broker offers trading on this platform. It is important to check that your device meets the minimum system requirements needed to run MT5.
How to Navigate the Platform
The platform interface of the MT5 provides you with access to the trading tools and commands needed for trading the market. Examples of these tools are:
- Market Watch: This is where the price quotes of different financial assets are displayed. It is found on the left side of the platform with the symbols, bid, and ask price of the assets displayed.
- Market Indicators: The indicator list is at the top of the platform. You can choose which indicator you plan on using in your trades and also when developing a trading strategy.
- Timeframes: Here, you select the timeframe that best fits your trading strategy – for example, H1, H4, D1, and W1.
- Charts: The options to choose from are the bar chart, line chart, and candlestick chart.
How to Trade on MT5
First, download MT5 on your chosen device. In this example, we’ll use the PC. After you install MT5, enter your login information. Then choose which account you want to open on the platform – either your demo or a live account.
Once you’ve logged into your trading account, you can take a trading position on the asset you’re interested in buying or selling. You do this by going to the market watch window on the left-hand side of the platform. Then, select the asset you want to trade listed in the market watch window. Double click on the chosen asset, and a dialogue box will appear with fields for you to fill certain specifications. These specifications are:
- Symbol: Choose the symbol of the asset you want to trade. For example, GBP/USD, EUR/JPY, and XAU/USD.
- Order type: Choose between market execution and pending order. Market execution is an order to sell or purchase a financial asset at the current price. A pending order is an order to sell or purchase an asset at a certain price in the future. There are different types of pending orders, including Buy Stop, Buy Limit, Sell Stop, Sell Limit, Buy Stop Limit, and Sell Stop Limit.
- Volume: Choose what size lot you want to trade on the asset you’ve selected. The lot size influences the value of a pip. For example, one lot size in EUR/USD means one pip movement is worth $10.
- Stop-loss and Take profit: Decide how you want to exit the trade. A stop loss is a level set by the trader to minimize the amount of loss if the trade moves against his/her position. A take profit is a level set to lock profits when the trade has moved in favour of your position.
- Comment: Leave a comment for future reference and keep track of your trade.
How To Close Your Trades
Once you’ve selected what you want in the above fields, then you can decide whether you want to buy or sell the asset. Simply pick the relevant option, you’ve entered the market. Once you’ve open a trade, that trade will stay open until either one of two things happens.
- You reach your stop loss or take profit. This happens when there is a change in price. In this case, the trade is closed automatically.
- You manually close a trading position. After you enter a trade, it is displayed on the bottom part of the MT5 platform. You close the trade by double-clicking on it. A dialogue box appears with a tab highlighted in yellow indicating close. Click that tab to close your trading position.
The Metatrader 5, with its additional features, has proven to be beneficial to traders who use the platform.