Beginner Level

Learn basic topics about forex, platforms and trading.
If you are new to the markets, start here.

Lesson 12: MT4: How to Open and Close Trades

Placing a trade on the MT4 trading platform
is easy, intuitive and quick. MT4 gives you a number of ways to trade, which
are explained below:

New
Order Window

The first way to trade is by discovering a
place of interest in the Market Watch window. Once you have found the market
where you want to open a trade, double-click the name of the market and the
order window will appear.

When the order window opens, choose the
transaction volume in batches (remember: 1 lot is equivalent to 100,000 units
of the basic currency, so 0.1 lot is equal to 10,000 and 0.01 is equal to 1,000
units of the basic currency) and whether to apply the Stop Loss or Take Profit
level.

Then you can put your trade in two ways: an
instant or a pending order. You can also write a comment on your trade, keep
trading notes or a diary on each of your positions.

Once you have selected your size, you need
to decide the direction of your trade. If you expect the market to go up, then
‘go long’ and press the ‘buy by market’ button. If you expect the market to go
down, then ‘go short’ and press the ‘sell by market’ button.

Once you’ve done this, your trade will go
through. From now on, your orders will be available in the ‘Trade’ tab in the
Terminal window.

One-Click
Trading

You can do this much faster by using a
one-click trading option. To trigger it, click the Tools-> Options

Select the’ Trade’ tab, and check the ‘One
Click Trading’ option.

Once one-click trading has been activated,
you have analyzed a certain market and would like to place a trade, so you can
do so from the top left corner of the chart, where the buy and sell buttons are
available. You can also modify the volume here.

Another way to open a position is by right-clicking
on the chart window and choosing ‘Trading’ and then ‘New Order’ and the order
window will appear.

Closing
Positions

To close an open position, press the ‘x’
button under the Trade tab in the Terminal window.

Or right-click on the line order on the
chart and pick ‘close’.

If you want to close only a part of the position,
right-click on the open order and select ‘Modify’. Then, in the Type field,
select Instant Execution and choose which part of the position you want to
close.