MetaTrader 4 Placing Orders

MetaTrader 4: Placing Orders

MetaTrader 4 (MT4) is a leading platform for forex and CFD trading, widely recognized for its robust features, user-friendly interface, and flexibility. One of the core functions of trading on MT4 is the ability to place orders effectively. Whether you are buying or selling assets, understanding how to place orders correctly is crucial to your success as a trader. This article will guide you through the process of placing different types of orders in MT4, helping you make informed trading decisions and manage your trades efficiently.

1. Understanding Order Types in MetaTrader 4

Before diving into how to place orders on MT4, it’s essential to understand the different types of orders available:

• Market Order: A market order is an instruction to buy or sell an asset at the current market price. It is the most straightforward type of order and is executed immediately.
• Pending Order: A pending order is an instruction to buy or sell an asset at a specified price in the future. MT4 supports four types of pending orders:
  • Buy Limit: An order to buy at a price lower than the current market price, anticipating the price will rise after reaching this level.
  • Sell Limit: An order to sell at a price higher than the current market price, anticipating the price will drop after reaching this level.
  • Buy Stop: An order to buy at a price higher than the current market price, anticipating the price will continue to rise.
  • Sell Stop: An order to sell at a price lower than the current market price, anticipating the price will continue to fall.
• Stop Loss and Take Profit: These are risk management tools that automatically close your position when the market reaches a certain price, limiting your losses or locking in profits.

For more detailed information on these order types, you can refer to Investopedia’s Guide to Order Types (opens in a new page).

2. How to Place a Market Order in MT4

Placing a market order in MT4 is a straightforward process that involves just a few steps:

1. Open the Order Window: You can open the order window by clicking the “New Order” button on the toolbar or by pressing F9 on your keyboard.
2. Select the Instrument: In the order window, select the currency pair or asset you wish to trade from the dropdown menu.
3. Set the Volume: Choose the trade volume, which is the number of lots you wish to trade. One standard lot is equivalent to 100,000 units of the base currency, but you can choose smaller lot sizes depending on your trading strategy and account balance.
4. Set Stop Loss and Take Profit: It’s always recommended to set stop loss and take profit levels to manage your risk. Enter the desired price levels in the respective fields.
5. Execute the Trade: After setting all parameters, click “Buy by Market” if you want to open a long position, or “Sell by Market” if you want to open a short position. Your order will be executed immediately at the current market price.
6. Monitor the Trade: Your open position will appear in the Terminal window under the “Trade” tab, where you can monitor its progress and modify it if necessary.

For more insights on placing market orders, visit BabyPips’ Guide to Market Orders (opens in a new page).

3. Placing Pending Orders in MT4

Pending orders are useful when you want to buy or sell an asset at a specific price level in the future. Here’s how to place a pending order in MT4:

1. Open the Order Window: Click the “New Order” button or press F9 to open the order window.
2. Select Pending Order: In the “Type” dropdown menu, select “Pending Order.”
3. Choose the Order Type: Choose one of the four pending order types (Buy Limit, Sell Limit, Buy Stop, Sell Stop) depending on your trading strategy.
4. Set the Price Level: Enter the price at which you want the order to be executed.
5. Set Expiry: If you want the pending order to expire at a certain time if it’s not executed, you can set the expiry date and time.
6. Set Stop Loss and Take Profit: As with market orders, it’s advisable to set stop loss and take profit levels to manage your risk.
7. Place the Order: Click “Place” to set the pending order. The order will be executed when the market reaches the specified price level.
8. Monitor Pending Orders: You can view and manage your pending orders in the Terminal window under the “Trade” tab. If needed, you can modify or delete the order before it is executed.

For more details on how pending orders work, you can check out MetaTrader 4 Official Guide on Pending Orders (opens in a new page).

4. Modifying or Deleting Orders

MT4 provides flexibility in managing your orders, allowing you to modify or delete them as needed:

• Modifying Orders: To modify an existing order, right-click on the order in the Terminal window and select “Modify or Delete Order.” You can adjust the stop loss, take profit, or price levels of a pending order. After making the desired changes, click “Modify” to save them.
• Deleting Pending Orders: If you want to cancel a pending order before it’s executed, right-click on the order in the Terminal window and select “Delete.” This will remove the order from your list of open trades.

For a comprehensive guide on order management, visit MQL5’s Guide to Order Modification (opens in a new page).

5. Tips for Effective Order Placement

Placing orders effectively in MT4 requires understanding market conditions and using the platform’s tools to your advantage. Here are some tips:

• Use Stop Loss and Take Profit: Always use stop loss and take profit orders to manage risk. These tools ensure that you have predefined exit points, protecting your capital and locking in profits.
• Be Mindful of Slippage: Slippage occurs when an order is executed at a different price than expected due to market volatility. This is more common with market orders during times of high volatility. Consider this when placing orders, especially in fast-moving markets.
• Plan Your Trades: Before placing any order, ensure you have a clear trading plan that includes entry and exit points, risk management strategies, and a contingency plan in case the market moves against you.
• Use Pending Orders Wisely: Pending orders are powerful tools that allow you to enter the market at specific price levels. Use them to capitalize on anticipated market movements without having to monitor the market constantly.

For more tips on placing effective orders, refer to Investopedia’s Tips for Placing Orders (opens in a new page).

Conclusion MetaTrader 4: Placing Orders

In this guide on MetaTrader 4: Placing Orders, we have explored the different types of orders you can place using the MT4 platform, including market orders and pending orders. Understanding how to place and manage these orders is essential for successful trading. By mastering these skills and applying them within the MT4 platform, you can execute trades more effectively, manage risk, and optimize your trading strategy. Continue to practice and refine your approach to order placement in MT4 to enhance your trading performance.