How To Use Spread Indicator in MetaTrader 5
Spread in MetaTrader 5 is a technical indicator that is super easy to use and yet they are very useful in trading. Nowadays, almost all forex brokers give access to minimum spread on retail traders. Because of this, retail traders can withdraw directly from liquidity providers. This should guarantee fast and high-quality execution of your trading transactions.
Understanding How Spreads Work
The other side of this is when you enter a market out of market liquidity, traders tend to consider fluctuations especially in liquidity which particularly depends on the market itself. The basic rule here affects the spread and later changes based on the situation of the financial market. There are also times when spreads increase a couple of times. For instance, during the night time or holidays where most of the markets across the world are closed. This could also happen when important news that can affect the market is being announced.
But controlling the size of the spread is possible. You can utilize the spread indicator to do so. This indicator is drawn again after every tick. It gives out the current value of the spread which is active at the time of the activity and it even allows the opening of trades during the most appropriate time.
You can see the spread indicator at the main chart window located at the top left corner of your chart. Customizing is possible as you can change the font, the indicator’s location and even adjust the value of the spread in points or in pips. Enabling the text label is also possible. By doing so, the spread value can be shown. This indicator is available on MetaTrader 4 and MetaTrader 5.
What are the parameters of the spread indicator?
- UseCustomPipSize (default is false) – if it is true, then the size of the item shall be taken out from the input DecimalPlaces.
- DecimalPlaces (default is 0) – this is the number of characters located at the decimal point.
- AlertIfSpreadAbove (default is 0) – if it is more than 0, the sound signal should create a sound whenever the spread gets an exceeding amount of the specific value.
- DrawLabel (default is false) – if it is true, the current value of the spread will be seen right across the offer price line.
- Font_color (default is red) – it is the color used by the spread indicator.
- Font_size (default is 14) – it is the size used by the spread indicator.
- Font_face (default is Arial) – it is the font used by the spread indicator.
- Corner (default is ANCHOR_LEFT_UPPER) – it is the location used at the spread indicator.
- Spread_distance_x (default is 10) – it is the horizontal distance used in the indicator.
- Spread_distance_y (default is 130) – it is the vertical distance used in the indicator.
- DrawTextAsBackground (default is false) – if it is true then a spread value will appear on the background.
- Label_font_color (default is red) – it is the text label’s color on the indicator.
- Label_font_size (default is 13) – it is the text label’s size in the indicator.
- Label_font_face (default is Courier) – it is the text label’s font in the indicator.