Trading Process in Forex Trading

terminal trading

If you go in forex business, trading is one of the most important aspects that you should notice. There are two important steps in trading. The first one is order opening and the other one is order closing. Order closing is important so that you could fix the trading results.

Order Opening

To trade in forex business, you can use MetaTrader 4 as platform. With this platform, you can trade using pending or market orders. When you want to open positions in recent time, you should use market order while if you want to execute order when the certain level of price is reached, you should use pending order instead. With pending orders, you still can trade even if there’s no opportunity for you to be at working place. Once you set the pending order and the specific price level is achieved, the order will be completed even though the platform is stopped.

You can find four types of pending orders at the open positions. These pending orders are:

  • Buy limit
    The buy position opens when the ask price is equal or lower than order price.
  • Buy stop
    The buy position opens when the ask price is equal or higher than order price.
  • Sell limit
    The sell position opens when the bid price is equal or higher than the order price.
  • Sell stop
    The sell position opens when the bid price is equal or lower than the order price.

Pending Order Placing

To place the pending order, you can follow the steps below.

  1. Open the tab “New Order” on MetaTrader 4. To do this, you can use several ways below.
  • Go to “Tools” menu and select “New Order”.
  • Open the tab “Trade” in “Terminal” block. Right click and select “New Order”.
  • Go to “Market Watch” window and double click on currency pair.
  • Right click the chart and select “Trade” – “New Order”.
  • Use F9 button.
  1. Select the “Pending Order” below the “comment” field. Modify the key definitions of the fields, for example:
  • Symbol. Financial tool which will be traded.
  • Volume. The sum of lots.
  • Stop loss. Function for losses limiting on indicated price.
  • Take profit. Function for profit fixing on indicated price.
  • Type. The pending order’s types (sell limit, buy limit, sell stop, or buy stop).
  • At price. Certain price’s level for opening the order.
  • Expiry. Function for order pending (pending order deletion from the platform when the order is not open until desired time).
  1. When every detail is submitted, click “Set”. The pending order will be displayed in “Terminal” – “Trade” window. You can delete or modify it (while it’s not open) by right clicking the order on “Terminal” window and selecting “Modify or Delete Order”.

Market Order Opening

Follow these steps to open market order.

  1. Open “New Order” tab.
  2. Modify the fields:
  • Symbol. Financial tool which will be traded.
  • Volume. The sum of lots.
  1. When every detail is submitted, click “sell” or “buy”, depends on which position that you’ll open. Market order will be displayed in “Terminal” – “Trade” window.

You also can use one click to open new order as well. Click “Show Trading Panel” or right click the chart and select “One Click Trading”. You can open order by clicking “sell” or “buy”.

Also read:
How to build winning trading plan
What is forex trading

Order Closing

  1. Stop Loss and Take Profit
    Close open position excecuted automatically
  2. Close by market
    Close open position manually whenever you need by clicking the order in the terminal

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