Binary Options is taking over the trading world as nothing else could ever do. Since there is a higher probability of returns, it is one of the fastest ways of trading to maximize profits.
Traders are shifting towards this new-age method of trading despite higher risks. The risk exists primarily because it operates on a two payoff options basis. In a binary option, the trader can expect only two outcomes. It can either come as a fixed monetary amount or nothing at all.
Although it may appear as a risky way of doing business, yet it can also not be ignored that the more the risks are, there is the chance of higher returns. And it is because of its rising popularity we can see major trading platforms offering binary options.
Meta trader 4 and Meta trader 5 are platforms that binary traders can make use of for their binary trading journey. Utilizing the binary options trading on the MT4/5 platform is always a wiser move.
Traders can reap the benefits from utilizing the feature of MT4 expert advisors. It is helpful in allowing the traders to automate their binary options strategies. By doing so, they can rely on accurate trading decisions devoid of any emotional involvement.
Trading in binary options may require a required amount of knowledge in the domain, to begin with, the first place. That is where the platforms like Meta trader4 and others come into use.
It provides outstanding trading possibilities and technical analysis tools that help the trader to achieve more. Platforms like Meta Trader 4 and 5 are the new and updated ways to fulfill binary trading and to win the trades better.
What does Meta Trader 4 and Meta Trader 5 signify?
Meta Trader is nothing but an online trading platform that has been developed by Metaquotes software. It is a company that any trader would come across while exploring the popular brokers. It currently has two versions, the Meta trader 4 and its successor, the Meta Trader 5. They are available to assist various kinds of trading. Even though the successor was launched to provide additional features to the traders, it did not turn out as expected. Due to low uptake, the Meta Trader 4 is still popular among them.
Meta trader is one of the most widely used platforms by online retail forex traders across the world. Since its launch, we can view it as the single most extensively used automated electronic trading platform. Binary options are an alternative way that traders can use in the foreign exchange market. But with the help of platforms like Meta trader 4, traders can use it to trade commodities and indices via spread betting or CFDs and futures markets.
History
The Meta Trader platform was released firstly in 2002. After a continuous development on the demanding needs, the company brought Meta Trader4. The company Metaquotes software introduced Meta trader 4 after significant improvements. That is why a large number of online brokers have adopted the MT4 platform as their primary trading platform.
Although it may not always hold true, it is a fact that a vast majority of them have at least adopted it as a reliable alternative. It is not surprising to see that many brokers started to develop MT4 plugins or add-ons to simulate a distinct trading environment. It is because of the flexible interface that the MT4 platform offers them. And the state-of-the-art architecture of the software opens new dimensions in the binary trading world with ease.
The period from 2007 to 2010 saw a drastic change; numerous brokerages incorporated the MT4 platform as an optional alternative to their current trading software. It was a relevant move resulting from the recognition among the traders and a large number of third-party scripts and advisors.
In October 2009, the parent company Metaquotes software created a visibly re-structured MetaTrader 5. It went into public beta testing in 2009 itself. And the first MT5 live account subsequently came into existence by InstaForex in September 2010.
In 2013 and 2014, the MQL4 programming language was completely revised. It paved the way that eventually led to the level of MQL5. Now, MQL4 and MQL5 both use unified MetaEditor.
So, there exists a significant comparison between both platforms. This is evident from the usage of either of these by the Forex and binary traders.
When we compare MT4 to the status of MT5, the recent reports of 2019 show that MT4 is still the popular player in the game of forex trading and binary trading.
What is Forex Trading? How is it different from Binary?
In general terms, the denotation forex trading means foreign exchange trading. It is nothing but a portmanteau of foreign currency and its exchange. The process of converting one currency into another for numerous reasons that may be known or not is called foreign exchange. This change of currency is usually for commerce, trading, or sometimes tourism.
If we try to figure an image of the vastness of this process, we can understand that from international data. The Bank of International Settlements reports that the daily trading volume for Forex was at near 6.6 trillion dollars in 2019.
The Foreign exchange market is fundamentally a global marketplace that dedicates itself to exchanging national currencies. It is an evident fact that there is a worldwide reach of trade and commerce, and finance with the rise in technology. That is why forex markets tend to be the largest market. It is also a fact that it’s the most liquid asset market in the world too.
The basic function of a forex market is to trade currencies. Without currencies, we cannot imagine the purchase of any goods or services. Interestingly, it is a common need that extends across all borders. Therefore, we cannot ignore the importance of international currency trade. It is necessary to conduct foreign trade and businesses.
To begin with, forex trading, just like any other form of trading like binary or stock trading one requires a set of knowledge to reduce the complexity. Although it is not complex. Micro forex trading is a good start for anyone new to it. It has a low capital need with variable trading limits. It allows the brokers to limit the trades to amounts that can go as low as 1000 units of the currency.
To win trades effectively without losing on the investments, it is also significant for the traders to develop trading strategies accordingly. One needs to set up a structure for broad guidelines and a trading road map. Cultivating emotional balance while dealing with unanswered questions is as significant as checking your profits. Moreover, when a trader can combine such requirements with a regular check of the positions, winning a forex trade is not impossible. For it is a high-leverage environment that offers huge rewards for the risk-takers, just as in binary trading.
How to use Meta Trading 4 and Meta Trading 5? What are its benefits in Binary trading?
Meta Trader 4/5 in binary options is fruitful in several ways. The Meta Traders platforms are customizable as per the need of the trader. This highly customizable nature is a key takeaway for the brokers. They have the freedom to add their indicators to the menu. MT4 and The MT5 platforms are available for direct downloading from MetaQuotes.
But, it will be more beneficial to use the download the considerable broker provides. Downloading a version that comes directly from a broker is sure to encase more features. The binary traders can benefit from these additional capabilities tremendously.
There may not be any other trading platform as customizable as the Meta Trader 4/5. While using the meta traders, the users can freely move to the menu to add the indicator of their wish to their charts. They even have the option to modify how the indicator needs to be visualized. It lets them have complete control over the information they rely on and its presentation.
- Community Benefits
There are numerable benefits that the binary trader can gain from using MT4/MT5 platforms for trading. There is a huge number of users that form the MQL4 community. By using either of these platforms, the trader can have accessibility into such an online community. Any technical query can be resolved with their help, even if you are new to the binary trading business.
Moreover, the user also gains the advantage of having diverse perspectives coming from different experts. It can act as a useful way to know the best indicators that can be put into the trading activity.
- Reliable Charts
The MT4 and MT5 platforms offer integrated trading and charting capabilities. It signifies that a binary trader can trade parallelly while also analyzing the markets. This makes the complex process straightforward, and it is an exclusive benefit one can gain while using these platforms. The current prices shown are trustworthy, and one can look at them to be up to date.
- Stability and Security
One of the most lucrative benefits a trader can ever gain is the stability of the platform she or he is using. MT4 or MT5 is a relatively simple trading platform that offers more stability. Unlike other software that takes a huge toll on the device we install it in, MT4/MT5 are steady platforms. This feature makes them a favorable option for the brokers as well as the traders.
These platforms are safe to assume that they would not cut out while dealing with key trading junctures. The desktop variants are even more stable and secure. Moreover, it is also available on IOS and Linux, in addition to Android.
The basic elements of MT4/MT5
There are certain basic elements that compose the MT4/MT5 platforms. And by gaining a command over these elements, any binary trader can begin trading on these platforms and win trades easily.
- The Market Watch
The market watch feature contains the list of the products that we can use for Forex, CFDs, and binary options trade. It helps the trader to monitor the changes and modify the strategies accordingly.
- The Navigator
It is located right below the Market Watch tab and allows the users to browse their different accounts. It is also vital in data analysis indicators, expert advisors, and scripts. It is essentially under use by trading experts, especially the ones that have multiple accounts with several brokers.
- The Graph Area
It is the place where most of the action takes place in a fully customizable way. As observable from the name, this is where the trader is able to check financial data. It also enables the trader to analyze trends. Some users will prefer to only use one graph and study it in-depth with various data analysis tools.
- The Tool Bar
It is arguably one of the most important parts of the interface that a trader must master. It includes a lot of useful features that facilitate formatting charts, adding new windows, etc. It is also useful for changing the language or saving the current trading environment.
- The Tool Box
A trader is expected to differentiate it from the Tool Bar. The Tool Box finds its place at the bottom and will allow the trader to browse current trades. Additionally, it also helps in browsing exposure, history, mailbox, calendar, etc. The famous MT4 market, as well as alerts and signals, are also within its reach.
Pros and cons of MT4/5
Pros
- They offer a flexible graph and data analysis interface which the traders can use to generate more profits while they trade.
- These advanced platforms offer infinite software possibilities. The add-ons and expert advisor’s programs make it an excellent choice for beginner binary traders.
- The traders get access to a thriving community for resolving all the technical queries.
- These platforms have been in the industry for almost a decade. That makes the meta trader platforms stand among the leaders.
- They equip the traders with trading signals and social trading to follow the best investors on the planet.
Cons
- The flexibility may sometimes come at the expense of easy usage.
- Thorough research and proper training are necessary steps that one needs to take before fully learning the ins and outs of this software.
- A growing number of brokers are now reverting to designing their software.
Conclusion
The Meta Trader 4/5 platforms have arisen to occupy one of the top positions of a leading online trading platform in both Forex and binary trading. It is, without a doubt, versatile in nature with an active community of investors that can allow a binary trader to win trades.
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