17 March 2025,07:58
Beginner
17 March 2025, 07:58
MT4, or MetaTrader 4, is a platform exclusively for forex trading and technical analysis. It is one of the most famously used forex trading platforms with much to offer. This platform lets traders speculate on price differences, set up trades, and execute them. MT4 has been around since 2005 and was developed by MetaQuotes, the company that developed MetaTrader 5. Since its release, it has undergone many developmental updates. Still, it is one of the markets’ most famous forex trading platforms. Traders use this platform because of its ease of access and some tools and indicators that help them make informed decisions.
Whether it is MT4 or any other platform, a process is followed to execute orders. The process starts with the trader making and funding his trading account on the platform. The platform will surely ask for ID confirmation before funding the account. Once that is done, the trader will study his stock and the market. An order is placed once the trader knows which stock he wants to buy and sell, commonly known as a buy or sell order. The trader initially filed the order at a specific price point. It takes a little while for the trading platform to execute the order, and by then, the stock price may have gone up or down slightly, depending on the market. This is known as slippage in the trading world and can impact your trading.
Slippage can impact your trades by changing your stock’s selling or buying price point. These differences are beyond anyone’s control and, in high market volatility, can greatly change the outcome of your trades. There are various reasons behind slippage, and one of the most important ones is a high demand for a certain stock in a highly volatile market. When many traders file orders to buy a stock that, according to their studies, might take a highly bullish trail soon, the slippage increases and changes your trades.
Traders who trade on MT4 can also experience this slippage because it depends on the market volatility and not the platform or how it chooses to execute orders. It is, therefore, of utmost importance that the traders know and understand how deviation works and what they can do to lower its impact on their trades. To curb this slippage and keep it to a minimum, most platforms provide a setting for adjusting the range of how much slippage you will accept while your order is being executed. It is known as deviation, and it is quite an interesting and helpful feature that MT4 offers; in this article, we will take you through everything you need to know about deviation in MT4 and more.
Deviation in Meta Trader 4 is the maximum allowed difference between the requested order price and the executed order price. When a trader places an order at a specific price, the platform tries its best to execute it at that price, but the price can vary due to market volatility. The order is still executed, but it might not be at the same price the trader opted for when placing it, and this is known as slippage. There might be a considerable difference between these prices, which may impact your trades.
In MT4, the maximum deviation is a setting that allows the traders to put a lower and an upper cap on the prices of a buy or sell order. This deviation is set in terms of pips. For example, if the current price of a stock is $50 and you place your maximum deviation at 10 pips and trade simultaneously, the order will not be executed if the price goes below $40 or above $60. So, by setting maximum deviation, traders can avoid loss and ensure that their trades are executed within their acceptable price range.
On most platforms, deviation is also known as slippage tolerance. Slippage is the difference between the prices at which the trader files an order and the price at which the order is executed. So, tolerating this slippage is the maximum deviation the trader is willing to accept. Understanding the concepts of deviation and slippage is very important for beginner traders to execute their orders correctly and ensure their loss is minimised.
In MT4, the deviation value is set up when placing an order. This value is set up in pips, the deviation unit. When a trader is about to file an order, he would first set his maximum deviation. For example, if the trader files an order with a maximum deviation of 10 pips at a stick price of $30, Meta Trader 4 will execute his order, whether buy or sell, at a price which will not be lower than $20 or higher than $40. In this way, the trader will never pay more than anticipated for buying a stock or receive less than anticipated when selling a stock.
However, in some cases, traders will be given requotes. Imagine a trader placing a buy order with a maximum deviation of 10 pips on a stock price of $40. Before the order was executed, the stock price rose to $56. This is above the trader’s maximum deviation, so the order will not be executed. Instead, the trader will get a requote, where the platform shows the new price and asks if the trader would still like to proceed with the order. In this situation, the trader can decide to kill the order completely, or if he has some margin, he can proceed with the new requoted order.
A trader can set up deviation when placing orders online via desktop or mobile phone. It is often recommended to place large orders via desktops because it allows the traders to view everything on a comfortably large screen, so there are fewer chances of mishaps. But if you are more than comfortable using the app on a phone, go for it. Ensure that your order details are correct when you place an order and that you have set your maximum deviation according to your trade.
Here, we take you through a step-by-step process of setting up deviation in the Meta Trader 4 when used on a desktop:
The order will now be executed at your maximum deviation by MT4, or you will be requoted for the order.
Here, we take you through a step-by-step process of setting up deviation in the Meta Trader 4 when used on a mobile:
These are the simple steps to execute your order with deviation on a desktop or a mobile phone.
Now that you understand what deviation is and how you can set it up, let us look at different modes of deviation and how they can affect your trades:
Any deviation set to 1 or 2 pips is considered a low deviation. In such a case, if the market volatility is high, the order is most likely to be rejected and requoted, but in low volatility, the order may be accepted and processed. This is because in high volatility, the deviation may be crossed quickly, and the platform will have no other way than to reject the order and offer you a requote. Similarly, if the market volatility is quite low, there is a high chance that the order will be fulfilled within your selected deviation.
Any deviation between 3 and 5 pips is considered moderate and is one of the most common forms of deviation traders use. The platform has quite a flexible window for this deviation, which is good for traders to accept. Here, the risk of requote and slippage is equal.
Any deviation set above 10 pips is known as a high deviation order, and this order has the highest chance of being accepted in most conditions. If significant news breaks out, affecting the stock price, such a deviation value would guarantee that your order is successfully executed, whether it is a buy or sell order. Here, the risk of requotes is very low, but the risk of slippage is considerable.
Based on the traders and their trading strategies, they can choose any deviation modes. The deviation value will express how they feel about the speed of execution of their order, slippage, and requoting.
Like all things, deviation has a few benefits and limitations, and here we discuss each of them:
The following are the benefits of using deviation in MT4:
Deviation is great for cutting losses and ensuring capital is spent in a controlled environment. This setting allows traders to manage their capital while carefully fulfilling their desired orders.
Deviation offers a buffer between price fluctuations, which allows for stable order execution.
Using deviation helps the traders control how slippage might affect their orders and, consequently, their capital.
The following are the limitations of using deviation in MT4:
There is a higher chance of getting a rejected order when deviation is used. This is more common in a highly volatile market where the platform has to fulfil many orders simultaneously.
Using deviation in your orders also increases your chances of getting requotes. When an order has deviation and the market is highly volatile, the platform can quickly reject it and send you a requote.
Here, we discuss the common mistakes and the best practices that each trader should know when using deviation in MT4:
These are the most common mistakes that traders make while using deviation in MT4:
This is the most common mistake that traders make. Traders use incorrect deviation limits that affect their trades. The traders can only make up for it by testing different deviation settings and finding the one that works best for them.
Another common mistake is not adjusting the deviation for trades when some major news that has an affect on the stock price comes out.
These are the best practices that you should follow when using deviation in MT4:
You should always test different deviation settings, e.g., with low, moderate, or high deviations. This will help you understand which setting works best for you and how to ensure your order is executed and you do not receive a requite.
It is always important to monitor the market closely after placing an order. So, after placing a deviation limit, monitor the market closely to see if your order was successfully executed. If you receive a rejected order and a requote, you can make a timely decision.
Deviation in Meta Trader 4 is the maximum allowed difference between the requested order price and the executed order price. When a trader places an order at a specific price, the platform tries its best to execute it at that price, but the price can vary due to market volatility.
Forex trading is all about minute price movements, and deviation affects these orders regarding overall profitability and order execution.
The minimum value for deviation in MT4 is 1, and it is executed in pips.
Deviation in Meta Trader 4 is the maximum allowed difference between the requested order price and the executed order price. When a trader places an order at a specific price, the platform tries its best to execute it at that price, but the price can vary due to market volatility. The order is still executed, but it might not be at the same price the trader opted for when placing it, and this is known as slippage. There might be a considerable difference between these prices, which may impact your trades.
This value is set in pips, the deviation unit. When a trader is about to file an order, he sets his maximum deviation first. Deviation can benefit traders by mitigating risk and executing smooth orders. However, it has limitations, such as many rejected orders and requotes. Therefore, all traders must master the concepts of deviation and slippage before entering the trading world.
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17 March 2025,07:58
Beginner
17 March 2025, 07:58
MT4, or MetaTrader 4, is a platform exclusively for forex trading and technical analysis. It is one of the most famously used forex trading platforms with much to offer. This platform lets traders speculate on price differences, set up trades, and execute them. MT4 has been around since 2005 and was developed by MetaQuotes, the company that developed MetaTrader 5. Since its release, it has undergone many developmental updates. Still, it is one of the markets’ most famous forex trading platforms. Traders use this platform because of its ease of access and some tools and indicators that help them make informed decisions.
Whether it is MT4 or any other platform, a process is followed to execute orders. The process starts with the trader making and funding his trading account on the platform. The platform will surely ask for ID confirmation before funding the account. Once that is done, the trader will study his stock and the market. An order is placed once the trader knows which stock he wants to buy and sell, commonly known as a buy or sell order. The trader initially filed the order at a specific price point. It takes a little while for the trading platform to execute the order, and by then, the stock price may have gone up or down slightly, depending on the market. This is known as slippage in the trading world and can impact your trading.
Slippage can impact your trades by changing your stock’s selling or buying price point. These differences are beyond anyone’s control and, in high market volatility, can greatly change the outcome of your trades. There are various reasons behind slippage, and one of the most important ones is a high demand for a certain stock in a highly volatile market. When many traders file orders to buy a stock that, according to their studies, might take a highly bullish trail soon, the slippage increases and changes your trades.
Traders who trade on MT4 can also experience this slippage because it depends on the market volatility and not the platform or how it chooses to execute orders. It is, therefore, of utmost importance that the traders know and understand how deviation works and what they can do to lower its impact on their trades. To curb this slippage and keep it to a minimum, most platforms provide a setting for adjusting the range of how much slippage you will accept while your order is being executed. It is known as deviation, and it is quite an interesting and helpful feature that MT4 offers; in this article, we will take you through everything you need to know about deviation in MT4 and more.
Deviation in Meta Trader 4 is the maximum allowed difference between the requested order price and the executed order price. When a trader places an order at a specific price, the platform tries its best to execute it at that price, but the price can vary due to market volatility. The order is still executed, but it might not be at the same price the trader opted for when placing it, and this is known as slippage. There might be a considerable difference between these prices, which may impact your trades.
In MT4, the maximum deviation is a setting that allows the traders to put a lower and an upper cap on the prices of a buy or sell order. This deviation is set in terms of pips. For example, if the current price of a stock is $50 and you place your maximum deviation at 10 pips and trade simultaneously, the order will not be executed if the price goes below $40 or above $60. So, by setting maximum deviation, traders can avoid loss and ensure that their trades are executed within their acceptable price range.
On most platforms, deviation is also known as slippage tolerance. Slippage is the difference between the prices at which the trader files an order and the price at which the order is executed. So, tolerating this slippage is the maximum deviation the trader is willing to accept. Understanding the concepts of deviation and slippage is very important for beginner traders to execute their orders correctly and ensure their loss is minimised.
In MT4, the deviation value is set up when placing an order. This value is set up in pips, the deviation unit. When a trader is about to file an order, he would first set his maximum deviation. For example, if the trader files an order with a maximum deviation of 10 pips at a stick price of $30, Meta Trader 4 will execute his order, whether buy or sell, at a price which will not be lower than $20 or higher than $40. In this way, the trader will never pay more than anticipated for buying a stock or receive less than anticipated when selling a stock.
However, in some cases, traders will be given requotes. Imagine a trader placing a buy order with a maximum deviation of 10 pips on a stock price of $40. Before the order was executed, the stock price rose to $56. This is above the trader’s maximum deviation, so the order will not be executed. Instead, the trader will get a requote, where the platform shows the new price and asks if the trader would still like to proceed with the order. In this situation, the trader can decide to kill the order completely, or if he has some margin, he can proceed with the new requoted order.
A trader can set up deviation when placing orders online via desktop or mobile phone. It is often recommended to place large orders via desktops because it allows the traders to view everything on a comfortably large screen, so there are fewer chances of mishaps. But if you are more than comfortable using the app on a phone, go for it. Ensure that your order details are correct when you place an order and that you have set your maximum deviation according to your trade.
Here, we take you through a step-by-step process of setting up deviation in the Meta Trader 4 when used on a desktop:
The order will now be executed at your maximum deviation by MT4, or you will be requoted for the order.
Here, we take you through a step-by-step process of setting up deviation in the Meta Trader 4 when used on a mobile:
These are the simple steps to execute your order with deviation on a desktop or a mobile phone.
Now that you understand what deviation is and how you can set it up, let us look at different modes of deviation and how they can affect your trades:
Any deviation set to 1 or 2 pips is considered a low deviation. In such a case, if the market volatility is high, the order is most likely to be rejected and requoted, but in low volatility, the order may be accepted and processed. This is because in high volatility, the deviation may be crossed quickly, and the platform will have no other way than to reject the order and offer you a requote. Similarly, if the market volatility is quite low, there is a high chance that the order will be fulfilled within your selected deviation.
Any deviation between 3 and 5 pips is considered moderate and is one of the most common forms of deviation traders use. The platform has quite a flexible window for this deviation, which is good for traders to accept. Here, the risk of requote and slippage is equal.
Any deviation set above 10 pips is known as a high deviation order, and this order has the highest chance of being accepted in most conditions. If significant news breaks out, affecting the stock price, such a deviation value would guarantee that your order is successfully executed, whether it is a buy or sell order. Here, the risk of requotes is very low, but the risk of slippage is considerable.
Based on the traders and their trading strategies, they can choose any deviation modes. The deviation value will express how they feel about the speed of execution of their order, slippage, and requoting.
Like all things, deviation has a few benefits and limitations, and here we discuss each of them:
The following are the benefits of using deviation in MT4:
Deviation is great for cutting losses and ensuring capital is spent in a controlled environment. This setting allows traders to manage their capital while carefully fulfilling their desired orders.
Deviation offers a buffer between price fluctuations, which allows for stable order execution.
Using deviation helps the traders control how slippage might affect their orders and, consequently, their capital.
The following are the limitations of using deviation in MT4:
There is a higher chance of getting a rejected order when deviation is used. This is more common in a highly volatile market where the platform has to fulfil many orders simultaneously.
Using deviation in your orders also increases your chances of getting requotes. When an order has deviation and the market is highly volatile, the platform can quickly reject it and send you a requote.
Here, we discuss the common mistakes and the best practices that each trader should know when using deviation in MT4:
These are the most common mistakes that traders make while using deviation in MT4:
This is the most common mistake that traders make. Traders use incorrect deviation limits that affect their trades. The traders can only make up for it by testing different deviation settings and finding the one that works best for them.
Another common mistake is not adjusting the deviation for trades when some major news that has an affect on the stock price comes out.
These are the best practices that you should follow when using deviation in MT4:
You should always test different deviation settings, e.g., with low, moderate, or high deviations. This will help you understand which setting works best for you and how to ensure your order is executed and you do not receive a requite.
It is always important to monitor the market closely after placing an order. So, after placing a deviation limit, monitor the market closely to see if your order was successfully executed. If you receive a rejected order and a requote, you can make a timely decision.
Deviation in Meta Trader 4 is the maximum allowed difference between the requested order price and the executed order price. When a trader places an order at a specific price, the platform tries its best to execute it at that price, but the price can vary due to market volatility.
Forex trading is all about minute price movements, and deviation affects these orders regarding overall profitability and order execution.
The minimum value for deviation in MT4 is 1, and it is executed in pips.
Deviation in Meta Trader 4 is the maximum allowed difference between the requested order price and the executed order price. When a trader places an order at a specific price, the platform tries its best to execute it at that price, but the price can vary due to market volatility. The order is still executed, but it might not be at the same price the trader opted for when placing it, and this is known as slippage. There might be a considerable difference between these prices, which may impact your trades.
This value is set in pips, the deviation unit. When a trader is about to file an order, he sets his maximum deviation first. Deviation can benefit traders by mitigating risk and executing smooth orders. However, it has limitations, such as many rejected orders and requotes. Therefore, all traders must master the concepts of deviation and slippage before entering the trading world.
Trade forex, indices, metal, and more at industry-low spreads and lightning-fast execution.
Sign up for a PU Prime Live Account with our hassle-free process.
Effortlessly fund your account with a wide range of channels and accepted currencies.
Access hundreds of instruments under market-leading trading conditions.
Sign up for a PU Prime Live Account with our hassle-free process.
Effortlessly fund your account with a wide range of channels and accepted currencies.
Access hundreds of instruments under market-leading trading conditions.
