How to Open a Trade
The MT4 platform enables you to open the Order window through which you’ll be able to execute your trade:
- Press the F9 hot key;
- Click on the “New Order” button located in your toolbars.
- Right-click on the chart instrument you want to Buy/Sell, and then choose New Order from the drop-down menu.
- From the Market Watch window, right-click on the symbol you want to Buy/Sell and then choose New Order from the drop-down menu.
The Order window comes with some basic features and options that allow you to properly set up your order the way you want. The following options are available in the Order window:
- Symbol: Allows you to select the instrument you want to open a new trade order.
- Volume: Allows you to select a predefined Lot size (how big your trade order size would be).
- Stop Loss: Allows you to attach a stop loss order for your trade. This is used to minimize your losses and when the instrument reaches this level your trade will be closed automatically.
- Take Profit: Allows you to attach a take profit order for your trade. This is used to lock in profits.
- Comment: Allows you to assign comments to your order. This is optional.
- Type: Allows you to choose the type of your trade order. You can choose between “Instant Execution” and “Pending Order.”
- Sell Button: Click this button if you want to open a Sell Trade Order.
- Buy Button: Click this button if you want to open a Buy Trade Order.
- Enable maximum deviation from quoted price option: By using this option you can limit the amount of slippage and you’ll avoid getting too many requotes.
Once the new trade is executed it will be listed in the Terminal Window the same way as in the figure below:
Different Types of Trading Orders
The MetaTrader 4 terminal allows you to open two different types of trade orders:
- Instant Execution or Market orders which send a request to your Broker to fill your trade instantly at the best available price
- Pending Orders which will send a request to your Broker to fill your trade at a predefined price level.
The MetaTrader 4 platform allows you to trade and open new orders directly from the chart window. To enable the One-click Trading functionality, you have to do right-click and select “One Click Trading” or press ALT+T. This function will enable you to open, modify and close current open positions right from the chart.
Once you activate the One-click trading functionality a special panel will appear in the top right corner of the chart window. If this is the first time you activate this feature a new Disclaimer window will pop up. Make sure you tick the box “I Accept these Terms and Conditions” and then OK in order to enable One-click Trading.
When trading using this panel all trade orders are executed instantly at the best available market price. If you want to place a Pending Order directly from the chart, place the mouse cursor over the necessary price level you want to Buy/Sell, right-click, and select “Trading” (see Figure 5).
Before executing the trade the Order window will appear so the trader can adjust the trade parameters.
If your trade order has an assigned stop loss order and a take-profit order, then your position will be closed automatically if the price reaches either of the two values. If you want to close the position early you can highlight the trade in the Terminal window, right-click and then select “Close Order” (see Figure 6).
As an alternative, you can always do a double click or press the “x” sign at the end of the order and it will have the same result. You can also take partial profits thus making a partial close of the trade by specifying the amount you wish to close and then just press “Close Position.”
Place Stop Loss and Take Profit Orders
You can modify and attach a stop loss (SL) and a take profit (TP) order of your current trade by locating the trade in the Terminal window, right-click, and then select “Modify or Delete Order” (see Figure 7). This action will open the Order Window from where you can attach the SL and TP orders. Double clicking on the open position in the Terminal window will have the same effect.
Usually, your Forex broker will only allow you to place SL and TP if they are at least 10 pips away from the current market price. Once you’re done, click Modify and your new SL and TP orders are attached to your trade order.
Next lesson will teach you how to trade algorithmically with the MT4 platform.