Placing Trades on MT4: How to execute trades
MetaTrader 4 (MT4) offers various methods for executing trades, including market orders and pending orders. Understanding these methods will help you execute trades efficiently based on your trading strategy. Here’s a comprehensive guide to placing trades on MT4:
1. Placing a Market Order
Market orders are executed immediately at the current market price. Here’s how to place a market order on MT4:
1.1. Open the New Order Window
Using the Toolbar:
- Click the “New Order” button on the toolbar (or press F9) to open the New Order window.
Using the Chart:
- Right-click on the chart for the instrument you want to trade and select “Trading” > “New Order.”
Using the Market Watch Window:
- Right-click on the currency pair or instrument you wish to trade in the Market Watch window and select “New Order.”
1.2. Fill Out the Order Form
Symbol:
- Ensure the correct instrument (currency pair, stock, etc.) is selected.
Volume:
- Set the trade size by entering the number of lots you want to trade. The volume is usually displayed in units (lots) of the base currency.
Order Type:
- Choose “Market Execution” to place a market order.
Stop Loss and Take Profit (Optional):
- Stop Loss: Set a level at which to close the trade if it goes against you, limiting your potential loss.
- Take Profit: Set a level at which to close the trade when it reaches a favorable price, securing your profit.
Comment (Optional): Add a comment or note for your own reference.
Buy or Sell:
- Buy: Click the “Buy” button to open a long position (buy).
- Sell: Click the “Sell” button to open a short position (sell).
1.3. Confirm Execution
- Order Execution: Once you click “Buy” or “Sell,” the order is executed immediately at the best available market price. You’ll see the trade appear in the “Trade” tab of the Terminal window.
2. Placing a Pending Order
Pending orders are used to place trades at a future price level. They are useful when you want to enter the market at a specific price that is not currently available. Here’s how to place a pending order:
2.1. Open the New Order Window
Using the Toolbar:
- Click the “New Order” button on the toolbar (or press F9) to open the New Order window.
Using the Chart:
- Right-click on the chart for the instrument you want to trade and select “Trading” > “New Order.”
Using the Market Watch Window:
- Right-click on the currency pair or instrument you wish to trade in the Market Watch window and select “New Order.”
2.2. Fill Out the Order Form
Symbol:
- Ensure the correct instrument is selected.
Volume:
- Enter the number of lots for the trade.
Order Type:
- Select “Pending Order” from the order type dropdown menu.
Type of Pending Order:
- Buy Limit: Buys at a lower price than the current market price.
Sell Limit: Sells at a higher price than the current market price.
Buy Stop: Buys at a higher price than the current market price.
Sell Stop: Sells at a lower price than the current market price.
Price:
- Enter the price at which you want the order to be triggered.
Expiration (Optional):
- Set an expiration date/time for the pending order. If not set, the order remains active until executed or canceled.
Stop Loss and Take Profit (Optional):
- Set stop loss and take profit levels if desired.
Comment (Optional):
- Add any comments or notes.
Place Order:
- Click the “Place” button to submit the pending order.
2.3. Confirm Order
- Order Confirmation: Once the pending order is placed, it will appear in the “Trade” tab of the Terminal window under the “Pending Orders” section. The order will be executed automatically when the specified price level is reached.
3. Managing Open Trades
3.1. Modifying Orders
Right-Click on the Trade:
- In the “Trade” tab of the Terminal window, right-click on an open trade or pending order.
Select “Modify or Delete Order”:
- Choose to modify or delete the selected order.
Update Parameters:
- Change stop loss, take profit, or other parameters as needed and click “Modify.”
3.2. Closing Trades
Right-Click on the Trade:
- In the “Trade” tab, right-click on the open trade you want to close.
Select “Close Order”:
- Choose “Close Order” from the context menu.
Confirm Closure:
- Click “Close” to finalize the trade. The trade will be closed at the current market price, and the result will be displayed in the “Account History” tab.
- Reviewing Trade History
Access Account History:
- Go to the “Account History” tab in the Terminal window to review past trades.
Filter and Export:
- Use filters to view specific trade periods or export trade history for further analysis.
Conclusion
Placing and managing trades on MT4 is straightforward once you are familiar with the platform’s interface and functionalities. Whether you’re placing market orders for immediate execution or setting pending orders for future trade opportunities, MT4 provides robust tools to facilitate your trading needs. Practice placing trades and managing orders to build confidence and efficiency in using MT4 for your trading strategy.
