How Does Metatrader 4 Make Money?
MetaTrader 4 is one of the most popular trading platforms. The terminal allows you to buy and sell currencies on the global exchange. Every day, close to 6 trillion US dollars change hands in this largest financial market. As COVID-19 has disrupted traditional employment, online trading is irresistible. But how do traders make a profit?
In South Africa, Forex is increasingly popular. Now, after global lockdowns, remote ways of earning are essential. Through MT4, users open orders that can bring profit. The platform gives access to real-time quotes for dozens of currency pairs. It is also packed with useful charting aids. Based on their strategy, traders buy or sell their instruments.
Basics of Using MT4
All those tabs, buttons, and windows may be confusing. This is why beginners need to practise in the demo mode first. The system will simulate the real trading environment, but no profit or loss will be made.
Theoretical knowledge is important, yet it cannot replace practice. Rookies need to get used to the controls, including tools for risk management. See how trades are opened and closed via the platform.
MetaTrader 4 has multiple useful graphs. These show past price dynamics for your instrument, as well as other relevant trends. Visual aids are indispensable because decisions must be rational. Basically, traders buy low and sell high. You may purchase more lots if you expect the currency to gain value, or sell it before it drops.
How to Set Orders
Traders may buy or sell currencies using market execution or pending order. The system also allows you to modify a trade you have entered into. In any case, you should begin by clicking the New Order button. This summons a special dialogue box.
Choose the currency pair from the drop-down menu. Move on to ‘Order Type’ which opens another drop-down list. Where you go from here depends on the execution option (Market Execution or Pending Order).
Setting Order with Market Execution
- Define the volume you wish to trade (position size). It is measured in lots. A single lot equals 100,000 units. This means that to trade 2,000 units of a certain currency, you would type “0.02” in the field.
- Fill in the comment field if necessary. You may enter any notes or remarks about the order.
- Specify the action to be taken (BUY or SELL).
- Wait for the confirmation window to appear.
Stop Loss and Take Profit are vital options that limit potential risks. Sometimes, these are disabled. Do not worry — when the price is already changing, this allows you to enter a trade as quickly as possible. Besides, you can always edit your order, setting the exit level after entering a trade.
Forextime offers comprehensive guidance on the subject. Remember that MetaTrader 4 comes in both desktop and mobile versions. Trades are managed in the same manner. With the Metatrader 4 app, you can trade on the go. The system covers all of your trading needs — just like the desktop terminal.
Setting Pending Order
Choose whether to BUY or SELL the pair. There are four options: Buy Limit, Sell Limit, Buy Stop and Sell Stop. This may be confusing at first. Here is how they compare.
Choose Buy Limit or Buy Stop for a long position below or above the market price, respectively. Use Sell Limit to go short at a price above the market price. Sell Stop allows you to go short below the market price. Next, enter the following:
- the price at which you want to enter;
- the size of the position;
- Stop Loss and Take Profit;
- expiry date.
Finally, click ‘Place’ to enter the trade. When it is executed, a notification will pop up.
How to Edit Trades
After you enter a trade, it can be modified. Begin by opening the ‘Trade’ tab. Unless you see it, access the feature via the menu bar at the top. Click on ‘View | Terminal’ (or CTRL + T). The tab contains all details of active trades, so editing is easy. You can see the entry price, volume, Stop Loss and Take Profit.
Both risk management options may be added or altered. To do this, right-click on the necessary order. Choose the option for modifying/deletion. Now, you can enter the desired levels in the corresponding fields. Finalize by clicking ‘Modify’. A notification will pop up confirming the execution of the changes.
Closing an Active Trade
- Find your trade on the above-mentioned tab.
- Right-click and choose the closing option.
- To finalize a whole position, use the yellow button under the BUY/SELL controls. Click ‘Close’.
That’s all! Now, you will see your balance change based on the result of the recently closed trade. If you have made the right decision, it will show a profit.
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