An Order window will have to be opened to place an order in the market. To open an "Order" window (see Figure 21):

1. Right-click on a currency pair in the Market Watch window and select "New Trade"; or

2. Right-click on an active chart, and select Trade>New Order; or

3. Click on the "New Order" button in the toolbar; or

4. Double-click on a currency pair in the Market Watch window; or

5. Press F9 on the computer keyboard.

Figure 21 - There are several ways to open a New Order window.


Placing New Orders
Market Orders

To place a market order, make selections for the following fields, as shown in Figure 22:

  • Symbol - choose from the drop-down list at the top (this will automatically be set to the symbol on the active chart). A corresponding tick chart appears in the left pane.

  • Volume - interms of lot size. 1.0 is equal to 1 lot, or 100,000 units. Many traders select smaller volumes.

  • Stop Loss and Take Profit - optional and only ifthe platform supports this option. If MT4 is downloaded through certain brokers, these fields will be user-definable. Otherwise, these fields will remain blank (but the orders can still be entered later).

  • Type - select "Market Execution" from the drop-down menu to enter a market order.

  • Sell by Market or Buy by Market - depending on the desired trade direction.
Figure 22 - Placing a market order.


After completing the fields, click "Okay" to close the window. The open order can be viewed in the Terminal window by clicking on the Trade tab.

Pending Orders
Entering a pending order is similar to placing a market order. After a New Order window has been opened, make selections for the following fields, as shown in Figure 23:

  • Symbol - choose from the drop-down list at the top (this will automatically be set to the symbol on the active chart). A corresponding tick chart appears in the left pane.

  • Volume - in terms of lot size. 1.0 is equal to 1 lot, or 100,000 units. Many traders select smaller volumes.

  • Stop Loss and Take Profit - enter price levels for stop loss and profit target.

  • Type - select "Pending Order" from the drop-down menu to enter a pending order.

  • Type - once Pending Order has been selected from the drop-down menu, a Pending Order box appears in the Order window. Select Buy Limit, Sell Limit, Buy Stop or Sell Stop from the drop-down menu next to Type (see more information about these order types in the "Order Types" section of this tutorial).

  • At Price - enter the stop or limit price for the trade.

  • Expiry - enter the date and time at which the order will expire. The order cannot expire sooner than 10 minutes.

  • Place - click on "Place" to submit the order.

Figure 23 - Placing a pending order.


The entry price, take profit and stop loss levels will appear on the tick chart on the left side of the Order window. The open order can be viewed in the Terminal window by clicking on the Trade tab.

SEE: The Stop-Loss Order-Make Sure You use it

Modify
To modify an order, such as to add a protective stop loss order and/or a take profit (profit target) order, highlight the trade in the "Trade" tab of the Terminal, right-click and select "Modify or Delete Order," as shown in Figure 24.


Figure 24 - Right-click a position in the Trade tab and select "Modify or Delete Order" to edit an order.


A window opens where traders can manually specify stop loss and/or take profit levels. The "Copy As" buttons can be clicked to populate the stop loss and take profit fields with the current price. Changes can then be made to the prices to achieve the desired stop loss and take profit levels. Once valid levels are specified, the trade can be entered by clicking on the long, horizontal bar at the bottom of the screen, shown in Figure 25. This bar will be highlighted only when valid stop loss and/or take profit levels have been entered (at least 10 pips away from the trade entry level); otherwise, the bar will remain grey and inactive.

Figure 25 - Modifying an order.


If stop loss and take profit values are specified, they will appear on the chart as horizontal lines at the corresponding price levels, making it easy for traders to monitor open trades (see Figure 26). A trailing stop can be added in conjunction with the protective stop loss order that allows the stop level to move up (in the case of a long position) or move down (in a short position) a specified amount. A trailing stop can be entered by right-clicking on an open position in the "Trade" tab of the Terminal, and selecting "Trailing Stop" and the desired stop level.


Figure 26 - If stop loss and take profit values are specified, they will appear as horizontal lines on the active price chart.


Closing Orders
If stop loss and take profit levels are specifies, the trade will automatically close once one of the price levels is reached. To close a trade at any time, highlight the trade in the Trade tab of the Terminal, right-click and select "Close Order." Alternatively, double-click the trade in the Terminal. A window appears prompting the trader to confirm that they trade should be closed. Click "Close #####" (the yellow horizontal bar at the bottom of the window) to close the trade, as shown in Figure 27.


Figure 27 - Right-click the trade in the Terminal and select "Close Order" to manually close an open position.


Open positions can also be closed by entering an equal and opposing position. For example, a trade that is long .5 GBPUSD can be closed by submitting a sell order for .5 GBPUSD.

SEE: Understanding Order Execution

Trade Tab
The Trade tab contains information about the current account status, open positions and pending orders. All open positions can be sorted by any field. When a pending order triggers, a new position will be opened and the pending order line will be replaced with that of the open position. All trade operations are displayed as a table having the following fields:

  • Order - the operation ticket number.

  • Time - time that the position was opened, represented as YYYY.MM.DD HH:MM (year, month, day, hour, minute).

  • Type - the type of trade, such as Buy or Sell

  • Lots - the trade size.

  • Symbol - the trading instrument.

  • Price - the price at which the position was opened.

  • S/L - the placed Stop Loss order level. If the order has not been placed, a zero value will appear in this field.

  • T/P - the placed Take Profit order level. If the order has not been placed, a zero value will appear in this field.

  • Price - the current price of the security (not to be confused with the price at which the position was opened).

  • Commission - commissions charged by the brokerage company.

  • Swap - charges for swaps.

  • Profit - the financial result of the transaction.

  • Comments - user-made comments entered during trade placement.

Conclusion
MetaTrader 4 is an electronic trading platform popular among retail forex traders. The platform is licensed to foreign exchange brokers who provide the software to their clients. Certain brokers have versions of MT4 that boast advanced features.

As with any order-entry platform, learning MT4's features takes time and effort. MT4 supports a simulated trading environment where traders can experiment with the platform and place "paper" trades without risking money.

SEE: Beginner's Guide To Ninja Trader: Introduction






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