A trading platform is a necessary tool to start trading. The platform (trading terminal in other words) is a set of software and hardware, adapted for online trading, which provides the interaction of the broker and the trader.
What Is a Trading Platform?
In other words, a trading platform is a software that is installed on the trader’s computer and used for online trading. Some platforms work through the Web browser and do not require installation on the computer. However, most trading platforms need to be installed on the device (PC), which will be used for the trading process. There are also mobile versions, which work on PDA, smartphones and other portable devices.
You can find plenty of trading platforms, but the most popular is MetaTrader 4.
The trading platform is given by the broker for free when opening the account, whether it is a live account or a demo account. Brokers offer their clients either their software or purchased licensed products.
Trading platform performs several important functions:
- The trading platform displays the market status, which means that the information on the quotations is provided in real-time mode. This information is systematized and grouped to be displayed as a graph. You can choose the time interval which will be used to group information. Such a time interval is called a timeframe. For example, if you choose a 30-minute timeframe, it will mean that one candlestick or bar (depending on the chosen graph) will correspond to a timeframe of 30 minutes.
- The trading platform lets the trade be conducted by placing market and pending orders, managing positions, and monitoring the condition of the trading account at any time convenient for the trader (except weekends and national holidays).
- The platform has instruments to execute technical analysis – thanks to built-in indicators – and allows making deals automatically (using advisors who perform trading operations without a trader’s participation, based on the previously written algorithm).
- There are several instruments in the trading platform that have the primary task of making the trading process easier. Such instruments are real-time news lines from major information agencies, alerts that indicate important system and trading events, account history, the formation of reports on deals, and so on.
While choosing the best trading platform for your trading, you will face numerous different options. MetaTrader 4, which MetaQuotes Software Corporation developed, remains the most popular trading platform.
