How to trade forex with MetaTrader 4

The advanced trading platform MT4 gives you access to a variety of features and tools, assisting you in carrying out analysis and customising your trading experience. These tools may also aid you in building trading algorithms that can automate your trading. In addition, add ons and indicators give you an edge in your trading. The chief features of the trading platform are automated trading, micro-lots, customisable charts, software-based. Developed by MetaQuotes in 2005, MT4 or MetaTrader 4 is most used with a range of markets, including forex, indices, commodities, and cryptocurrencies through CFDs.

MetaTrader 4: trading currencies

The easiest way to open a trade in MetaTrader 4 is to use the order window, placing an instant order in the market. First, go for the currency pair of your choice by clicking on the ‘Window’ tab at the platform’s top. You can then select ‘new window’. You can subsequently click ‘new order’ on the MT4 toolbar or get an order window by pressing F9.
Trading at the market bid/offer, you will have to enter your desired trade size - in lots - in the volume box. Then, you click sell or buy, with market execution selected as the order type.

The Market Execution setting permits an instant order within MetaTrader 4. Naturally, dealing at the market is not the only answer to the query directed at the way in which the platform trades.

You can also opt for buying or selling using a limit or a stop order by choosing from the ‘Type’ dropdown. This shows the buying and selling at particular desired levels removed from the current market price, relative to executing immediately at the prevailing price.

Entering a short position on MetaTrader 4

Short selling or going short on the market is just selling when you lack a long position. For this, you would just need to place a sell trade to open.

Closing a trade in MetaTrader 4

Exiting a trade-in MetaTrader 4 is simple enough. Go for the ‘Trade’ tab from the ‘Terminal window. Press CTRL + T to call up or dismiss the terminal window. You will see open trades you have displayed in the Trade section of the Terminal window. In the order you wish to close, press right-click. Then, select ‘close order’.

An order window is thus opened. Press the yellow close button to close your trade. If you have two positions or more open in MetaTrader 4 and are considering the best way to close one, the manual way is the best. Here, you are being particular as to which individual trade you wish to quit.

MetaTrader 4: setting up a stop loss

There are fields given to enter a stop loss level and a take profit level. If you click on either the up or down arrow in the stop loss field, the box will immediately show the current market price.

You can clearly see how your proposed to stop level relates to the current bid/offer prices.

MetaTrader 4: placing a limit order

To place a limit order to close a position, you just have to enter a target price level in the take profit field. A limit order may also open a position.

For this, you have just to change the Type field from Market Execution to a pending order. You can then opt for the buy limit or sell limit from the pending order type dropdown menu.

MetaTrader 4: setting orders by pips as default

Given that you add a stop loss or a take profit when you open a trade, the default functionality is for the order levels to find expression in absolute market levels.
You're having added a stop or limit order in this way, go to the Terminal window’s Trade tab.

Opening and closing this window is by pressing CTRL +T. Next, Right-click on the trade you prefer and opt for ‘modify’ or ‘delete order’.

An order window will open, permitting you to amend your order levels, not as pips but as a point.

MetaTrader 4: changing the trade volume

Trade volume refers to the trade size in a number of lots. When you open a trade, you have to supply a value in the Volume field of the Order window.

MetaTrader 4: adding currency pairs

Suppose there’s a particular currency pair you wish to trade, you may use the command CTRL U, thus opening the ‘Symbols’ window, looking through the navigation tree for any currency pairs you would prefer adding.
Just click on the symbol. Click ‘show’. The currency pair is added.

Conclusion

How to trade forex with MetaTrader 4 is thus a query swiftly responded to. Naturally, the best way to get these tips to really have an impact on you is to try them out yourself on MetaTrader 4. Considering the best way to practice your skills while not risking any money, the most recommended way is using MetaTrader 4 demo account setup.

After you have built up your confidence through demo trades and are prepared to trade, you will have a live trading account. MetaTrader 4 demo account setup is intuitive. Starting with live trading is easy to follow as well. Get in touch with a good broker!

Author's Bio: 

Am a blogger and I like to do reading and writing, especially in the arena of financial market trading. There are many myths about the market. I like breaking these myths and pushing people towards the practical world.