As an aspiring forex trader, one of the key elements you need to understand is the spread. The spread is the difference between the bid and ask price of a currency pair. It is one of the most important factors that influence your profits or losses in forex trading. Therefore, it is essential to know how to show the spread in the MT4 platform, which is one of the most popular trading platforms in the world.
MT4 or MetaTrader 4 is a trading platform that allows traders to access the forex market and execute trades. It offers a range of features and tools that enable traders to analyze the market, identify trading opportunities, and manage their trades. One of the most important features of the MT4 platform is the ability to display the spread of currency pairs. Here are the steps to follow to show the spread in the MT4 platform:
Step 1: Open the MT4 platform and select a currency pair
The first step is to open the MT4 platform and select a currency pair that you want to trade. You can do this by clicking on the ‘Market Watch’ window on the left-hand side of the platform. The market watch window displays the list of currency pairs available for trading. Choose a currency pair by double-clicking on it, and it will appear in the ‘New Order’ window.
Step 2: Display the ‘New Order’ window
To display the ‘New Order’ window, right-click on the currency pair you have selected in the ‘Market Watch’ window and select ‘New Order’ from the drop-down menu. The ‘New Order’ window will appear, displaying the current bid and ask prices of the currency pair.
Step 3: Show the spread in the ‘New Order’ window
To show the spread in the ‘New Order’ window, you need to enable the ‘Show spread’ option. To do this, click on the ‘Options’ button in the ‘New Order’ window. This will open a pop-up window with several options. Select the ‘Show spread’ option and click ‘OK.’ The spread will now be displayed next to the bid and ask prices in the ‘New Order’ window.
Step 4: View the spread in the chart
Another way to view the spread in the MT4 platform is to look at the price chart. To do this, open a price chart of the currency pair you want to trade by double-clicking on it in the ‘Market Watch’ window. Once the chart is open, right-click on it and select ‘Properties’ from the drop-down menu. In the ‘Properties’ window, select the ‘Common’ tab and enable the ‘Show Ask line’ and ‘Show Bid line’ options. The bid and ask lines will now be displayed on the price chart, and you can see the spread between them.
Step 5: Monitor the spread
Now that you know how to show the spread in the MT4 platform, it is essential to monitor it regularly. The spread can vary depending on market conditions, such as volatility, liquidity, and trading volume. A narrow spread indicates that the market is liquid and has a high trading volume, while a wide spread suggests that the market is illiquid and has a low trading volume. It is important to keep an eye on the spread to ensure that you are getting the best possible price for your trades.
In conclusion, the spread is a crucial element in forex trading, and it is essential to know how to show the spread in the MT4 platform. By following the steps outlined above, you can easily display the spread in the ‘New Order’ window and the price chart. It is also important to monitor the spread regularly to ensure that you are getting the best possible price for your trades. With this knowledge, you can make informed trading decisions and maximize your profits in the forex market.