MT5: Understanding and usage

What is MT5?

MetaQuotes has launched a next-generation trading platform called MetaTrader 5 which is an upgrade from the extremely popular MetaTrader 4 (MT4). On one hand, MT4 has been created especially for forex trading, MT5 is designed to be more inclusive and support other asset classes like cryptocurrencies. MT5 is the perfect multi-asset platform for new-age traders who wish to improve their trading experience with the help of noteworthy and effective features. These also mean that MT5 is better equipped with more trading tools and resources.

MT5 lets you trade numerous assets like CFDs on forex, stocks, commodities, indices, futures, energies, and cryptocurrencies. The interesting part is that you also get flexible leverage along with no re-quotes, minus the price rejections and slippages. MetaTrader4 allows you to trade remotely with the help of your smartphone through the MT5 Web platform which allows you to trade from any browser or device of your choice. Along with these latest features, you also get access to trading robots, and trading signals, and also have the option of copy trading. 

Trading with MT5

1. Education

We’ve already listed above the numerous features that MetaTrader5 offers to boost your trading activities. It is necessary for one to know as much as possible about their features and applications so that one can leverage the platform to the fullest. Once you take the time out to gain knowledge of MetaTrader5’s operations, you will be able to explore the entire spectrum right from the asset class types, trading tools, indicators, and graphical objects. It will also help you get comfortable with the six different order types and the various other automated marketing strategies that are out there. 

2. Download and Install

Below are the minimum system requirements that your PC needs to have to be able to run MT5: 

  • Windows 7 Operating System or higher (64-bit system recommended)
  • Pentium 4/Athlon 64 processor or higher (All modern CPUs should be able to support this)
  • If you plan on using it intensively by opening multiple charts and utilizing multiple EAs,  you may want to look for some powerful hardware options. 

Here’s how you can download and install MT5 on your PC:

  • Click on the MetaTrader 5 download link
  • Run the setup.exe file
  • Add your account login information
  • You could even open a live account directly from the platform too
  • Start trading

3. Place Order

Now that you know how to log into MT5, you can start trading your selected assets. 

You can place an order on MT5 in many ways: 

  • Tap on Tools on the Menu bar and then choose ‘New Order’
  • On the Market Watch window, double-click on the asset you want to trade. 
  • Next, you right-click on the asset of your choice and then choose ‘New order’. 
  • Begin single-click trading on your asset’s chart.

Whenever the above options are chosen, the ‘Order Screen’ will appear. A tick chart appears on the left side of the screen and you get the option to customize it on the right side. The bid and ask prices are displayed on the tick chart. 

Order Types

There are two main types of order types: 

  1. Market order
  2. Pending order
  • A market order refers to the order to purchase and sell the asset at the present rate. The order will be executed immediately. 
  • A pending order refers to the kind of order where you purchase or sell the asset at a particular price in the future. 
  • Buy Stop: It is an order to purchase the asset at a rate that is more than the present price because you expect that the price will increase further. 
  • Sell Stop: It’s an order to sell the asset at a lower rate than the present price because you expect the price to continue tumbling. 
  • Buy Limit: It refers to an order to buy an asset at a lower rate than the present price because we expect the price to increase in the future after it has reached a particular rate. 
  • Sell Limit: It is an order where you sell the order at a greater rate than the present one because now you expect that after a certain point the price will fall. 
  • Buy Stop Limit
    This one combines buy stop and buy limit orders that have been created to root out slippages. You typically set this kind of order at a rate that’s more than the present price. Once this target price is achieved, a limit order is placed. 
  • Sell Stop Limit
    Similar to buy stop limit, sell stop limit combines sell stop and sell limit orders to get rid of slippages. Inverse to the buy stop limit, here you set the sell stop limit at a rate lower than the current price. When this price is hit, a sell limit order is placed. 

When you use Stop Loss and Take Profit orders, the trade positions will be closed by default once these are triggered. You can even choose to close the positions on your own whenever you like even prior to the orders being triggered. 

Market Analysis with MT5

  • Technical Analysis with MetaTrader 5

When trading financial assets online, technical analysis becomes very important. The core element of technical analysis is to recognize the potential price patterns that might shape up in the future. 

MT5 creates a conducive environment for technical analysts that allows them to go deep into price analysis on a wide range of assets. Overall, you will find 38 technical indicators, 44 graphical objects, 21 timeframes, and the liberty to have unlimited charts on your trading space. 

Traders can get a better idea of how the prices move with the help of indicators that are basically mathematical tools. They’re applied on MT5 charts by default and can be grouped into a number of categories as per their application. 

  • Trend
  • Oscillators
  • Volume
  • Bill William’s tools
  • Custom indicators

Fundamental Analysis on MT5

Apart from technical analysis, you also have fundamental analysis which studies the impact of economic, social, and political factors on demand and supply forces. With MT5, it is much easier to carry out fundamental analysis in real-time.

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