What MetaTrader 5 is
MT5 is the successor platform to MT4 from the same vendor (MetaQuotes Ltd). The visible interface is similar enough that an MT4 user adapts quickly; the underlying architecture, scripting language, and capabilities differ substantially.
Beyond MT4's forex-and-CFD focus, MT5 adds native support for exchange-cleared instruments: stocks, futures, options, and bonds where the broker provides them. The broker chooses which asset classes to enable; some brokers run MT5 forex-only despite the platform's broader capabilities. On exchange instruments, the Depth of Market (DOM) shows real prices and order volumes from market participants where the broker provides them; MT4 also has a Depth of Market window.
MT5 introduces the netting position model alongside MT4's hedging model. In netting mode, the account holds one position per symbol — opening a sell while already long results in the long position being reduced, closed or reversed. In hedging mode (MT4's only model), the account holds each position separately, including opposite positions on the same symbol — opening a sell while already long produces a second, independent position. The mode is broker-set — some brokers offer both as separate account types; check your account specification before trading.
How MT5 handles margin, pip values, and position models
Margin display, lot conventions, and pip value calculation work as on MT4 for forex and CFD symbols: volume is entered in lots, in multiples of the volume step the broker sets for each symbol (the symbol's specification shows the minimal volume and the volume step), margin is shown in the Trade tab, and pip values are inferred from contract specifications. Leverage is set by the broker per account, as on MT4.
The position model affects how trades aggregate. In netting mode: a 1.0 lot long EUR/USD followed by a 0.5 lot sell EUR/USD produces a 0.5 lot net long position, not two separate positions. The opposing sell partially closes the long; it does not open a second position. In hedging mode: the same sequence produces two separate positions, the long 1.0 lot and the short 0.5 lot, each with its own entry price, P&L, and margin requirement (hedged same-symbol exposure is margined per the broker's rule — the larger leg only, a reduced or zero rate on the covered volume, or full margin on both legs).
Worked example in netting mode (USD account, 1:100 leverage): open 1.0 lot long EUR/USD at an ask of 1.0850. Margin held = €1,000, which MT5 converts at the current ask: $1,085.00. EUR/USD then rises to 1.0860 / 1.0861 (bid / ask, an assumed 1-pip spread), and the same lot now holds $1,086.10. Sell 0.5 lot EUR/USD at the 1.0860 bid — in netting mode this partially closes the long, leaving 0.5 lot long. Margin held now: €500 × 1.0861 = $543.05, so $543.05 of margin returns to free margin.
Worked example in hedging mode (same trade sequence): two positions held separately. Long 1.0 lot from 1.0850 and short 0.5 lot from 1.0860 are both open, with EUR/USD at 1.0860 / 1.0861. Margin held for hedged exposure: depends on broker — some charge margin only on the larger leg (€1,000 × 1.0861 = $1,086.10), some charge full margin on both ($1,086.10 + €500 × 1.0860 = $1,086.10 + $543.00 = $1,629.10), and others charge a reduced rate or nothing on the covered 0.5 lot. The broker's terms specify the calculation.
Placing, modifying, and closing orders
Order entry mirrors MT4: F9, or New Order in the Market Watch context menu. The dialog accepts the same fields plus stop-limit variants — Buy Stop Limit and Sell Stop Limit are MT5-only Order types that combine triggering (stop) with execution-price control (limit).
MT5's Depth of Market panel shows bid and ask prices at each level. On exchange instruments it shows real prices and order volumes from market participants; on other instruments it can be formed from the broker's own quotes, and without broker volumes it shows price levels calculated from Bid and Ask. Market and pending orders can be placed from the DOM, and dragging stop levels and pending orders there requires One Click Trading to be enabled.
Position modification and closing follow the same right-click pattern as MT4. The netting model interacts with closing: in netting mode, closing acts on the single net position for the symbol — closing the full volume closes it and a smaller volume reduces it, while reversing it takes an opposite deal larger than the position or the separate Reverse position command; in hedging mode, closing affects only the specific selected position.
Strategy Tester improvements over MT4 are significant. MT5 supports multi-currency backtesting (an EA that trades multiple instruments runs against historical data on all of them simultaneously) and tick-data backtesting at finer granularity. MQL5, the language of MT5 Expert Advisors, has a syntax very close to C++, and MT4 EAs need porting before they run on MT5.
Broker variations on MT5
Not every MT4 broker offers MT5, and a broker that does chooses which additional asset classes to enable on it.
Asset class breadth varies enormously by broker. A broker focused on retail FX may offer MT5 with the same forex-and-CFDs scope as their MT4 platform, with no actual stocks or futures. A broker with multi-market clearing relationships may offer hundreds of stocks, futures across major exchanges, and options. The MT5 client looks the same; the available symbols differ.
Position model is a configuration the broker chooses per account type. Brokers offering hedging mode allow multiple simultaneous positions in the same instrument; netting-mode brokers consolidate them.
DOM availability depends on the broker: MT5 help states that depth of market for exchange instruments is not guaranteed, and the number of bids and offers shown is set by the broker's symbol parameters. The broker's terms specify the data source behind the levels.
Common mistakes on MT5
Hedging vs netting confusion when migrating from MT4. A trader accustomed to opening counter-positions to hedge an existing trade discovers in netting mode that the second order reduces, closes or reverses the first instead of creating a second leg. The reverse surprise also occurs: a trader who expects netting finds the account in hedging mode, where an opposite order opens a second position. Which system applies is set by the broker for each account.
EA migration friction: a typical MT4 EA does not compile in MT5 unchanged. Ports require deliberate work — MQL5 has no predefined Ask, Bid or Bars variables, and it adds event handlers such as OnTrade and OnBookEvent. Some EAs exist on MT4 only.
Broker subset of features: a trader who opens an MT5 account expecting full multi-asset access discovers the broker only enables forex and a handful of indices. The platform's capability ≠ the broker's offering. Verify symbol availability before committing to a broker for a specific asset class need.
One-Click Trading carries the same risk as on MT4: the first time a one-click deal is attempted, MT5 shows its Terms and Conditions, and once “I Accept these Terms and Conditions” is ticked, market orders from the chart's one-click panel, closing positions, deleting pending orders, removing Stop Loss or Take Profit levels, and placing or modifying pending orders on the chart go through without a confirmation dialog. A triggered stop-loss closes the position with a market operation at the Bid or Ask, so it can fill beyond its level in fast markets.
Reporting differences: MT5's Reports view splits trading results into Summary, Profit/Loss, Long/Short, Symbols and Risks tabs and saves them as HTML or PDF. Traders who export MT4 history for tax or analysis purposes need to learn where MT5 keeps these reports.