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AB19 - MT4 Basics: How to Set Orders

"As a trader, one of the important things that you should learn is how to place orders. Depending on the market analysis that you have done, price can behave differently. This leads to setting up either a market order or a pending limit or a stop order. In this article, we give you the insights into the different ways you can set up the order types using the MT4 trading platform. It is relatively easy to use and the multiple approaches to pull up the trading order terminal will be easy. It might seem a bit difficult at first but once you have some practice, placing orders on the MT4 is very easy. Learn about the different order types that you can use on the MT4 trading platform in this article. At the end, you should be able to start applying the concepts explained onto a demo trading account and after you have gained enough experience, you can then apply this when you start to trade with a real forex trading account."

The ability to place and manage orders is something that is crucial to trading. As a trader, it might seem to be a bit of a daunting task initially. However, fret not! There is a bit of a learning curve. The more you practice, the more second nature it becomes for managing and placing orders.

Before you go ahead and start placing orders, there are some settings that you need to configure. To begin with, click on Tools > Options on the menu bar and then select the tab, Trade. From this tab, you can set the general configurations before you trade.

AB19 01 Order Configuration MT4

MT4 Forex Order Configuration/Settings window

The symbol by default setting can be configured to apply such that the instrument is automatically used when trading. This makes it easy for you to access the trading terminal and to show up the current instrument that you are looking at.

You can also set the default lot size. Depending on your leverage, you can set the minimum lot size here. This way, regardless of what instrument you want to trade on, the same lot size is applied. This can save you some time when placing a trade.

Finally, you can also set the deviation by default. When you trade with a market maker forex broker, they require you to set the limit orders a minimum number of pips away from the current market price. This done in order to account for the spread that you pay.

Therefore, use this section when your forex broker requires you to set the limit order a few pips away from the market price. Lastly, enabling the one-click trading allows you trade with just one click.

Once the main settings are done, you can also enable the Buy/Sell buttons directly on the chart. To do this, click on the arrow icon on the top left corner of your chart. This will open the buy/sell button. Make sure to adjust the lot sizes so it is easier for you trade with lower lot sizes.

AB19 02 Buy Sell MT4 Buttons

MT4 – Buy/Sell Buttons

Remember that if you use the buy/sell buttons from the chart, you will have to manually adjust the stop and take profit levels.

To trade the normal way on the MT4 platform, you can use the shortcut key of F9. This will automatically open the trading order window. From here, you can choose between market buy/sell or limit buy/sell. To switch between market and limit orders, you can use the drop down to select between Instant Execution or Pending Order.

AB19 03 Order Types MT4

MT4 Order Types Window

When you select the instant execution type, you can also set your stop loss and take profit levels directly. This allows you to execute your trade at market while also setting the stop loss and take profit levels automatically.

 AB19 04 Pending Orders MT4

MT4 Pending order types

As you can see from the above pending order types, you can select a buy limit, sell limit, buy stop or a sell stop. The buy limit order is used when price is above your entry price. In this instance, you expect price to drop to your price level before reversing.

Likewise, a sell limit order is placed above the current market price. In this instance, you expect price to move to your price and then drop.

The sell stop order is placed when you expect price to just drop. This way, your order is picked up and you expect price to continue to drop. The opposite holds true for buy stop orders. In this instance, you expect price to rally and therefore your buy stop order is placed above the price.

With these different order types, you can set the orders depending on how you expect price to behave.

Another way to trade on the MT4 trading platform is to right click on the chart at the price level where you want to trade. From the menu options, you can select the order type and this will open the trading window from where you can further configure your order including stops and take profit levels.

Alternately, you can right click on the Market Watch window and then select the New Order option in order to trade from there directly. This will once again open up the trading order terminal from where you can configure your order even further.

As you can see from the above, the MT4 trading platform allows you to set up different order types and there are multiple approaches on how you can do this. It is best that you try out the different combination of order types on a demo trading account to get good practice before using a real trading account.

Read 872 times Last modified on Wednesday, 19 June 2019 11:11