If you are a beginner in forex trading, MT4 is a good tool for you to start your FX journey. The largest advantage of using MetaTrader4 is that it is useful to beginners and experienced traders. When starting forex trading using the MetaTrader4 tool, you need to create a mt4 demo account. On a demo account, you can trade with virtual money and can’t lose any real money.
The mt4 demo account is useful for testing various strategies or trading styles, but you must remember that trading with fake money means you will experience the psychological pitfalls and pressure that come with live trading since no risks are involved.
Features of MT4 for beginners
Some features of MT4 are leveraged by beginners, including:
- Multiple timeframes
- Default and custom indicators
- One-touch transactions
- Charting tools
- Copy trading and signals
- Historical data access
- Cross-platform availability
What is a currency pair?
A currency pair is the price of the exchange rate for 2 different currencies traded in the forex markets. When an order is placed for the currency pair, the base currency or first listed currency is purchased while the second listed currency in the quote currency or currency pair is sold.
How to read currency pairs?
Currency pairs are the national currencies of two countries being coupled for trading on a foreign exchange market. Both currencies will exchange rates on which the trade has its position basis. All the trading in the forex market takes place through currency pairs on the following:
- Selling
- Buying
- Trading
The currency exchange rates of the foreign currency pairs may float because the exchange rate is not stable or may change. Due to the respective changing values, the exchange rates may fluctuate. The calculation for the rates between the currency pairs is a factor of the base currency.
The typical currency pair listing appears as EUR/USD, this is an example of EUR as the base currency and USD as the quote currency.
How do beginners trade MT4?
On the MT4 platform, here are the steps to trade the forex market through the following:
Choose a currency pair. The currency pairs are shown on the left side of the MT4 dashboard under the Market Watch tab. Right-click the currency pair to create a new order you want to trade and choose New Order. You can use the main New Order table when creating a new order, shown on the top dashboard’s top section.
Open a new trading position. After you tap on the New Order button, the traders can open a new trading position. The traders can add details about the following:
- Volume
- Order type
- Stop-loss limits
Monitor the market. Now is the most essential part where the traders have to monitor the markets constantly and the movements in the currency pair they trade. The trader must decide based on the following:
- trading plan
- trading goals
- current market situation
Close the trade. Open trading positions get automatically closed as take-profit/stop-loss limits are reached or manually closed by a trader. Right-click the open position and choose Close # to manually close the order. Orders are automatically closed using the Expert Advisors.
