Using nargin to set default values for optional arguments and using nargout to set optional output arguments. Quick example
function hLine=myplot(x,y,plotColor,markerType)
% set defaults for optional paramters
if nargin<4, markerType='none'; end
if nargin<3, plotColor='k'; end
hL = plot(x,y,'linetype','-', ...
'color',plotColor, ...
'marker',markerType, ...
'markerFaceColor',plotColor,'markerEdgeColor',plotColor);
% return handle of plot object if required
if nargout>0, hLine = hL; end