New traders will find MetaTrader 4 guides very useful especially in understanding the different aspects of trading and the trading platform itself. MT4 is known to be the most popular trading platform nowadays and also the most user-friendly with highly customizable items. But you cannot effectively use the platform if you are not familiar with the terms used in this platform. So, if you happen to see some of these terms when trading, you will not feel alienated from them.
Commonly Used Terms in MetaTrader 4
Currency Pair – these are two currencies that appear as a pair. The first currency in the pair is known as the base currency and the second currency is called the counter currency.
Exchange Rate – this is known as the base currency’s price and is mostly expressed as counter-currency.
Bid or the Ask Price – these are prices relating to the currency pair. For the bid price, it is a term used for the price where the buyers want to buy while the ‘Ask Price’ refers to the price in which the sellers want to sell.
Spread – in most trading platforms, brokers actually don’t charge fees or commissions for every win you acquire. But their means of earning is through the bid/ask spread as it is considered the main cost that traders have to pay.
Pip – This is the term used when pertaining to the smallest increment or for short of Percentage in Point.
Going Long – this term used in trading means buying.
Going Short – this term used in trading means selling.
Navigating in MetaTrader 4
When it comes to navigating, there are also some important terms that you need to take note of. This will ensure that you properly understand what you will be doing is right.
Control Ribbon – this is where several actions in MetaTrader 4 can be performed.
Toolbar – this item in the platform functions together with the tools that are basically very important such as timeframes, line studies, charts, and general commands.
Market Watch – this is where you can see the different instruments to be used in MT4. You can find here the specification, tick chart, the depth of the market, chart window, and the new order.
Navigator – this is where traders can log in to their personal trading accounts. It also provides the option of creating a demo account.
Terminal Window – this is where you can see the alerts, messages, trading history, exposure, and open orders.
Charts Workspace – this is where the charts are being displayed and where the trader conducts his trading analysis. this is where traders can log in to their personal trading accounts. It also provides the option of creating a demo account.
Changing the Chart Style
Upon creating a profile in MT4, a default chart will be given to you and might look useless to other traders. But contrary to that, charts are actually important since they can be customized. There are ways to view those charts in MT4. It can either be in the form of line charts, bar charts, and candlestick. Traders will have the freedom to customize their charts according to their trading lifestyle.