Understanding max deviation in MT4 Trading is crucial for forex traders. Learn how this feature affects your trades and how to use it effectively.
When customers place orders for trading on the MT4 platform, a small line appears on the order interface, indicating the maximum deviation between the trading price and the quotation. There is also a value for the maximum deviation below, and many customers do not know what this means.
On the MT4 platform, the maximum deviation in quotation refers to the maximum difference between the quoted price accepted by a trader and the actual market price during trading. The difference may be caused by insufficient market liquidity, network delays, broker system issues, or other factors. The maximum deviation in quotations is an important factor that traders must consider when executing trade on the MT4 platform.
The meaning of maximum deviation in quotation is that when a trader issues a trading order, the MT4 platform will try its best to execute the order with a quotation that is closest to the actual market price. However, due to market volatility and other factors, there may be a certain degree of deviation in actual trading. The size of the deviation depends on the settings of the broker and the limitations of the platform.
For example, if the current price of gold is 1283.50, the investor sets a maximum deviation of 10 points and trades at this time, but the current price changes. If the price is below 1283.40 or above 1283.60, the trade will not take place.
The maximum deviation function is a negative and positive number set to control the sliding point in the following way: Foreign exchange investors must specify a value of 1 tenth (≥ 0) in the column of maximum deviation when establishing orders.
This value is the maximum number of slip points that the instruction can accept. If the market price exceeds this amount when executing the order, the order will be automatically cancelled. This is the operational situation designed for the maximum deviation function.
The maximum deviation in quotation is a function that protects traders, ensuring that they are not subjected to significantly unfavorable trading under extreme market conditions. For example, in highly volatile markets, the maximum deviation of quotes can prevent traders from suffering huge losses in a short period of time, as trading platforms execute orders based on the set maximum deviation to avoid exceeding the risk tolerance of traders.
For some traders, the maximum deviation in their quotation may have a certain degree of impact on their trading strategy. If traders rely on fast price execution and high-frequency trading, significant deviations may have a negative impact on their profitability. Therefore, when choosing brokers and trading platforms, traders need to consider the limit of maximum deviation in their quotes and make corresponding decisions based on their trading strategies and risk tolerance.
Another important point is that users must find a legitimate platform, after mt4 download for pc, and then proceed with trades in order to protect their account security.
Disclaimer: Investment involves risk. The content of this article is not an investment advice and does not constitute any offer or solicitation to offer or recommendation of any investment product.
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