Contract for Differences is a tool of financial trading and is widely spread among brokerage firms that operate in the field of financial investment. Contracts for differences are simply a contract between two main parties, the seller and the buyer, whose value is based on the value of the underlying asset. If the value of the underlying asset exceeds the agreed price, the seller will pay the difference to the buyer. If the value of the asset falls below the agreed price at the beginning of the transaction, the buyer will pay the difference to the seller, thus the transaction will be based on a contract concluded from the beginning.
Before you start investing in CFD or other trading areas, you need to know how to trade, how to trade and the main trading tool? One of the most important components of trading is the trading platform, trading platforms differ by the intermediary companies involved in investment, so you have to know what platforms that are trading CFDs.
The importance of CFD trading platform
The trading platform is a set of technical tools and software that allows the traders in the company access to everything related to the market prices, trades, indices and other
The trading platform is primarily based on the Internet and consists of two main parts: the customer trading platform and the company platform. The client trading platform is a computer program installed on his or her computer or any user’s device. The company platform is a platform where all the information related to the market and the prices of financial transactions are available. Market prices.
Although the functionality of the basic deliberative platforms is one but different from each other in some points, the most important of which are:
Installation method Depending on the device used, there is installation on PC, installation in web interface via web browser and installation on mobile phones.
Its ability to provide technical analysis using a variety of indicators.
Access to the stock market and the availability of liquidity simultaneously.
The ability to conduct business processes automatically according to the customer and his vision.
In addition, each platform differs from its counterpart in some additional services such as account management, newsflash, signal generation and other services.
Components of trading platform
The CFD trading platform consists of several basic components:
Display: The display shows the movement of prices at a moment where the trader can see all the movements of the price of prices at the prices of key banks, and it provides opportunities for the investor to follow all the changes in the market.
Charts and Indicators: Prices are offered in a time frame chosen by the client. Traders can read the moving charts through various charts, and the trader can choose the regular charts or the charts.
Trading Times: Capital markets operate for a certain period of five days a week. The prices move through them. You can open more than one display of currencies or contracts and trades, so traders can follow more than one decade and change at a time.
Technical indicators: Indicators are a fee that helps to know what has happened in the past and what is happening in the present and expected in the future, all this helps to make good decisions about future trades. There are more than one indicator on the platform, including the most famous MACD and RSI, along with many oscillators. The indicators can read the trading volume, pivot points, support and resistance levels, Fibonacci, Jean, etc., all of which help to make charts very well.
Transaction management: This is the primary objective of the emergence of online investment so that trading and profit without the need for an actual presence of the investor.
MetaTrader 4 platform (MT4) and its features
The MetaTrader 4 platform is a world-renowned trading platform that allows trading and technical analysis through the MetaTrader 4 platform, which can trade currencies, CFDs and other trades, and is the best desktop platform produced by The Russian company (MetaQuotes Software) for electronic trading, technical analysis and automated trading. You can find in the platform everything that makes you easy to handle and flexible in use, and you can follow through to everything that happens in the market for CFDs and Forex from the orders of sale and purchase, trading and account details and others. The most important features of this platform are:
From the platform you can access financial market news directly from the Internet.
It is easy to use and has more than one language.
Offers you a set of technical analysis tools.
You can use more than one of the tools of financial markets, such as Forex, Futures and others.
It has full encryption software for all trades using (128 bit).
Provides unlimited number of graphs in different time periods.
You can manage a local database with a bid history, edit, issue, and supply.
MetaTrader 5 platform (MT5) and its features
MetaTrader 5 is an updated platform that allows traders to trade many of the additional features they have not tried before. Here are the most important features of MetaTrader 5:
It is a flexible platform with a hedging feature.
It has professional technical analysis, along with 100 charts, 80 indicators and other tools.
With a deep analysis of the market, selling and buying prices can be seen directly in the market.
Allows a tab to trade with a single click.
Provide for entry and exit points and trading signals.
Accepts dealing with many currencies and provides many languages.
Can be downloaded or used with all mobile devices.
The difference between MetaTrader 4 platform and MetaTrader 5
Here we present the most important points resulting from the comparison of the two platforms:
The number of supported MT4 commands is 3 types, MT5 is 4 types.
With MT4 can free part of the deal and the rest of the deal is completed and this is what can not be done with MT5.
Both platforms have an execution or cancellation policy as desired by the customer.
There are six types of MT4 in MT4 and there are only 4 types in MT4.
Both platforms have a Hedging feature.
MT4 has a filtering feature, which means that the trader has only one center open, and this can not be done with MT5.
MT4 technical indicators are 38 indicators, while MT5 has only 30 indicators.
There are 44 tools available to assist in determining the direction of a financial instrument in MT4. In MT5 there are only 31.
With MT4, money can be transferred between accounts within the same trading server, but with MT5 it can not be done.
With MT4 can talk with other traders from the rolling platform, can not do it with MT5.
There is an email service in each facility