MetaTrader 4
Encyclopedia
MetaTrader 4, better known as MT4, is an electronic trading platform
widely used by online retail foreign exchange speculative traders. It was developed by MetaQuotes Software
and released in 2005. The software is licensed to foreign exchange brokers who provide the software to their clients. The software consists of both a client and server component. The server component is run by the broker and the client software is provided to the brokers customers, which use it to see live streaming prices, charts and to place orders as well as manage their account.
The client is a Microsoft Windows
-based application that became popular mainly due to the ability for end users to write their own trading scripts and robots that could automate trading. In 2010 MetaQuotes released a successor, MetaTrader 5, however uptake was slow and as of 2011 most brokers still used MT4.
had previously released a number of versions of the MetaTrader software starting in 2002. Metatrader 4 was a significantly enhanced version and was released in 2005.
Between 2007 and 2010 a number of brokerages added the MT4 platform as an optional alternative to their existing trading software due to its popularity with traders and the large number of third party scripts and advisors.
In 2010 a significantly re-coded MetaTrader 5 went into public beta testing and was subsequently released later in the year
.
Yahoo hosts a large group (over 12,000 members) devoted to development of free open source software for MetaTrader.
MT4 is designed to be used as a stand alone system with the broker manually managing their position and this is a common configuration used by brokers. However a number of third party developers have written software bridges
enabling integration with other financial trading systems for automatic hedging of positions.
but it is not designed for full-time work in the stock market
or to conduct non margined trading.
MetaTrader 5 is designed as a platform for equity markets as well as foreign exchange, CFD and futures trading.
Both MetaTrader 4 and 5 can use custom indicators and trading programs (called Expert Advisors) for trading automation.
Electronic trading platform
In finance, an Electronic trading platform is a computer system that can be used to place orders for financial products over a network with a financial intermediary. This includes products such as shares, bonds, currencies, commodities and derivatives with a financial intermediary, such as a...
widely used by online retail foreign exchange speculative traders. It was developed by MetaQuotes Software
MetaQuotes Software
MetaQuotes Software Corp is a software company that produces online trading platform MetaTrader 4 more commonly known as MT4. It specializing in the development of software for financial markets and is registered in Cyprus but founded and primarily based in Russia. Its main product MT4 is used by...
and released in 2005. The software is licensed to foreign exchange brokers who provide the software to their clients. The software consists of both a client and server component. The server component is run by the broker and the client software is provided to the brokers customers, which use it to see live streaming prices, charts and to place orders as well as manage their account.
The client is a Microsoft Windows
Microsoft Windows
Microsoft Windows is a series of operating systems produced by Microsoft.Microsoft introduced an operating environment named Windows on November 20, 1985 as an add-on to MS-DOS in response to the growing interest in graphical user interfaces . Microsoft Windows came to dominate the world's personal...
-based application that became popular mainly due to the ability for end users to write their own trading scripts and robots that could automate trading. In 2010 MetaQuotes released a successor, MetaTrader 5, however uptake was slow and as of 2011 most brokers still used MT4.
History
Its developer MetaQuotes SoftwareMetaQuotes Software
MetaQuotes Software Corp is a software company that produces online trading platform MetaTrader 4 more commonly known as MT4. It specializing in the development of software for financial markets and is registered in Cyprus but founded and primarily based in Russia. Its main product MT4 is used by...
had previously released a number of versions of the MetaTrader software starting in 2002. Metatrader 4 was a significantly enhanced version and was released in 2005.
Between 2007 and 2010 a number of brokerages added the MT4 platform as an optional alternative to their existing trading software due to its popularity with traders and the large number of third party scripts and advisors.
In 2010 a significantly re-coded MetaTrader 5 went into public beta testing and was subsequently released later in the year
Functionality
The client terminal includes a built-in editor and compiler with access to a user contributed free library of software, articles and help. The software utilizes a proprietary scripting language, MQL4, which enables traders to develop Expert Advisors, custom indicators and scripts. MetaTrader's popularity largely stems from its support of algorithmic tradingAlgorithmic trading
In electronic financial markets, algorithmic trading or automated trading, also known as algo trading, black-box trading or robo trading, is the use of electronic platforms for entering trading orders with an algorithm deciding on aspects of the order such as the timing, price, or quantity of the...
.
Yahoo hosts a large group (over 12,000 members) devoted to development of free open source software for MetaTrader.
MT4 is designed to be used as a stand alone system with the broker manually managing their position and this is a common configuration used by brokers. However a number of third party developers have written software bridges
MT4 ECN Bridge
MT4 ECN Bridge is technology allowing user to access ECN marketplace through MetaTrader 4 trading platform.-Background:Retail Forex brokers in general are divided into two categories: Dealing Desk brokers and Non-Dealing Desk brokers.-Dealing Desk:In the Dealing Desk model almost none of the...
enabling integration with other financial trading systems for automatic hedging of positions.
Components
The complete MetaTrader 4 package includes the following components:- MetaTrader 4 Client Terminal - the client part. Provided free by brokerages for real-time online trading and as Demo (practice trading) accounts. This provides trade operations, charts and technical analysisTechnical analysisIn finance, technical analysis is security analysis discipline for forecasting the direction of prices through the study of past market data, primarily price and volume. Behavioral economics and quantitative analysis incorporate technical analysis, which being an aspect of active management stands...
in real time. The internal CC (programming language)C is a general-purpose computer programming language developed between 1969 and 1973 by Dennis Ritchie at the Bell Telephone Laboratories for use with the Unix operating system....
-like programming language allows users to program trading strategies, indicators and signals. 50 basic indicators are included, each of which can be further customized. The software runs on Windows 98/2000/XP/Vista/7. Some users have reported success using WINE on Linux for the client terminal.
- MetaTrader 4 Mobile - controls a trading account via mobile devices such as mobile phoneMobile phoneA mobile phone is a device which can make and receive telephone calls over a radio link whilst moving around a wide geographic area. It does so by connecting to a cellular network provided by a mobile network operator...
s or PDAsPersonal digital assistantA personal digital assistant , also known as a palmtop computer, or personal data assistant, is a mobile device that functions as a personal information manager. Current PDAs often have the ability to connect to the Internet...
. Runs on Windows Pocket PC 2002/Mobile 2003.
- MetaTrader 4 Server - the core of the system, the server part. Designed to handle user requests to perform trade operations, display and execution of warrants. Also, sends price quotes and news broadcasts, records and maintains archives. Works as a service. Does not have a separate interface.
- MetaTrader 4 Administrator - is designed to remotely manage the server settings.
- MetaTrader 4 Manager - designed to handle trade inquiries and manage customer accounts.
- MetaTrader 4 Data Center - a specialized proxy serverProxy serverIn computer networks, a proxy server is a server that acts as an intermediary for requests from clients seeking resources from other servers. A client connects to the proxy server, requesting some service, such as a file, connection, web page, or other resource available from a different server...
and can be an intermediary between the server and client terminals. It reduces the price quote sending load on the main server.
Products
The platform is focused on margin trading. Some brokerages use the platform to trade CFDContract for difference
In finance, a contract for difference is a contract between two parties, typically described as "buyer" and "seller", stipulating that the buyer will pay to the seller the difference between the current value of an asset and its value at contract time...
but it is not designed for full-time work in the stock market
Stock market
A stock market or equity market is a public entity for the trading of company stock and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.The size of the world stock market was estimated at about $36.6 trillion...
or to conduct non margined trading.
MetaTrader 5 is designed as a platform for equity markets as well as foreign exchange, CFD and futures trading.
Both MetaTrader 4 and 5 can use custom indicators and trading programs (called Expert Advisors) for trading automation.