So now we have a basic clean chart setup. How is a trade opened?
Real easy. if your using MT4 press F9 and the trade order box pops up.
Quite a few options here but for now we will just take a look at the trade order Type.
There are 2 types of trade entry. Instant Execution and Pending Order.
The default setting when you press F9 is Instant Execution. What this means is that when you click either te buy or sell buttons you will be placing a trade into the market at the price specified , you will be instantly in the market basically speaking if you have clicked the Buy button you are thinking that the chart is going to move in an upwards direction , ie the price increases and if you have clicked the sell button then your assumption is that the chart is going to move down, price decreases.
Press F9 and the order box pops up. Now use the Type dropdown box and select Pending Order.
There are 4 different types of Pending Order available and as the name suggests this is a “pending” order in other words its is an order that waits for a specific market condition to occur.
Buy Limit Order
A buy limit order is an order placed which will be executed when the price drops to a specified price . When the market hits this price the order will trigger and open a buy trade.
When you place the order you will see it sat there waiting on your chart for the price to drop down to it.
Note : to set a Buy Limit order the price must be above where you want to set the order.
You want the price to drop down to the entry line and then bounce back up.
Sell Limit Order
A sell limit order is the opposite of the buy limit order . IE the price come from below and you set an order where you think the price will bounce to the downside.
You want the price to move up to the entry line and then bounce back down.
Buy Stop Order
A Buy Stop order is one where the price is below where you want to enter and you want the price to continue in its existing direction.(up) NOT bounce.
You want the price to move to entry line then continue going UP.
Sell Stop Order
A Sell Stop order is one where the price is abovebelow where you want to enter and you want the price to continue in its existing direction. (Down) NOT bounce.
You want the price to move to entry line then continue going DOWN.
Viewing your entries and orders
Click View on the menu bar at the top of the platform and then click Terminal.Here you can see the various orders and positiona you have open.
I you have either bought or sold a position in the market and decide the price has ether moved into profit enough to take profit or position has moved against you and you want to close it.
Put your mouse over the buy or sell order you want to close , right click it and left click close order,this brings up a trade Close box.
If you have decided to remove a pending order you have set then in the Termnal window , right click the order and left click modify or delete order,then left click Delete.