Metatrader 5
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Not to be confused with metatrader 4.
MetaTrader 5 (MT5) is a trading terminal and server suite published by MetaQuotes Software. It connects to broker infrastructure to display prices, execute orders and run automated strategies written in the MQL5 language. Unlike its predecessor, it supports exchange-traded instruments alongside over-the-counter contracts.[1]
What the platform comprises
MT5 is not a single program but a set of components: a desktop terminal, mobile and web terminals, a server side operated by the broker, and a strategy tester. The terminal displays market depth, charts and order tickets; the server matches and routes orders according to the broker's execution model.
- Order types: market, limit, stop and stop-limit orders, with partial fills and multiple fill policies.
- Timeframes: 21 chart periods from one minute to one month.
- Automation: Expert Advisors, custom indicators and scripts written in MQL5.
- Accounts: hedging and netting modes, depending on broker configuration.
Availability of instruments, leverage, order types and account modes varies by broker, jurisdiction and regulator.
Worked example: margin on a forex position
Margin requirements are set by the broker and differ by instrument and account type. The figures below are illustrative.
The same position on an account with 1% margin would require approximately 1,085 USD. Leverage caps are imposed by the relevant regulator and are not uniform across countries.
Execution and order handling
MT5 supports several execution modes, including instant, request, market and exchange execution. In market execution, orders are filled at the best available price and slippage is possible; in instant execution, the dealer may reject a price. The mode is chosen by the broker, not by the platform user.
Depth of market (DOM) is available for instruments where the broker or exchange supplies it. For OTC forex, the DOM reflects the broker's liquidity rather than a central order book.
Automated trading
Expert Advisors are programs that can open, modify and close positions without manual intervention. They run on the terminal or on a broker's virtual hosting service. The strategy tester allows backtesting on historical data, but results depend on the quality of the data and on modelling assumptions such as spread and slippage.
MQL5 is not backward compatible with MQL4, so programs written for MetaTrader 4 require conversion.
Often confused with
- metatrader 4
- MetaTrader 4 is an older platform focused mainly on forex and CFDs, with a single-threaded architecture and the MQL4 language, whereas MetaTrader 5 supports exchange-traded instruments, a multi-threaded tester and MQL5; the visible sign is the platform name and language shown in the terminal's title bar and editor.
See also
References
- ↑ MetaTrader 4 and MetaTrader 5 terminal documentation; cTrader order window documentation. Field names and defaults vary between builds and between brokers.