How To Place Trades Using Metatrader 4 (VIDEO)
In this five minute video, I’ll show you the OANDA MT4 platform and how to place orders within MetaTrader 4. You can follow along using a free OANDA demo account by clicking the link below this video.
Register for a free OANDA MT4 demo account here.
You need to decide which currency pair to trade before you submit any orders. Here as an example, I’ll open the chart for the euro against the pound. Click file in the top left corner, then “New Chart”. Select Forex, EURGBP. The chart automatically opens to a one hour chart, which just so happens to be my favorite time frame for analysis.
Let’s hypothetically say I’ve done my analysis and that I wish to go short. That means that I expect the price to decline. Going short means that if the price does fall, I would earn money. If the price rises while I’m short, it means that I would incur a loss.
The EURGBP chart is open and I’m confident in my view of the market direction. The next step is to place an order. I do that by clicking “New Order” at the top of the screen.
The order window pops up. There are 3 very important fields that you need to understand.
The Symbol field is automatically filled with the forex pair for the chart that you have open, which in this case is EUR/GBP. You need to confirm that you are trading your desired forex pair.
Volume is another way of saying lot size. Every increment of 0.01 adds another 1,000 units of the base currency to your trade. For example, a volume of 1.0 means that you’re trading 100,000 units of the base currency. 0.1 means that you’re trading 10,000 of the base currency.
The type field enables you to enter the order type, providing information about how quickly you’d like the trade to enter. There are 3 types of orders.
You can enter almost immediately using a market order. This tells OANDA to execute your trade as quickly as possible. Pushing the red button “Sell by Market” starts the process.
<Push “Sell by Market”>
The trade now appears in the Terminal window at the bottom of the screen. You can see a trade appeared. In the Order field is a unique identifier that helps OANDA track every trade that you make. The order type only comes up as either buy or sell. A buy trade expects the market to rise, whereas a sell trade expects the market to fall.
Size is another name for volume or lot size. Here I place 0.1, which means I sold 10,000 euros and bought an equivalent amount of pounds.
Price is where my trade officially entered the market. My profit and loss is calculated based on this point.
You’ll notice that the S/L and T/P, which are stop loss and take profit, are both 0.0. This means that no stop or take profit have been set with OANDA. If you’d like to set them, simply right click on the order and select Modify or Delete Order. I’ll pick some numbers out of thin air just to show you how it works.
<Enter numbers in window>
Now push “Modify”.
You’ll know the stop loss and take profit set have been set when these red lines appear on the chart. The far left side labels them as sl and tp, respectively, to help you visually track where you’re trading.
If for whatever reason you’d like to close a trade, just right click on the order again. Select “Close Order”. The request sends a market order to exit the position.
The other two order types that I haven’t yet covered are stop entry and limit entry orders. A limit entry order is used when you want to enter a trade at a market price that’s better than the current market. By better, I mean a buy order that is below the current market price or a sell order that is above the current market price. A stop order is the opposite of a limit order. Stop entries are used when you want to enter a trade at a market price that’s worse than the current market.
To place a limit sell entry, I again click on New Order at the top of the screen. One of the nice features of MetaTrader is that it remembers your last order settings. I’m still trading EURGBP and it saved the volume setting from the prior trade.
The only element that I’m changing is the Type. When I click the drop down menu, I need to change the type to Pending Order before I can place a stop or limit entry.
Immediately after selecting Pending Order, a new box appears underneath with a second type. You’ll need to select Buy Limit, Buy Stop, Sell Limit or Sell Stop depending on your market expectation.
Let’s say I want to enter short, a sell order, roughly 5 pips better than the current price. I would choose sell limit. Sell for short and limit for better than current price. I type in the exact price and push “Place”.
That pending order is now awaiting execution. You can confirm this visually in one of two ways. The dotted green line appears at my desired entry price. There is also a label on the left side telling me I have a sell limit order for 0.1 lots.
Alternatively, I also see the sell limit ticket in the terminal window underneath the balance and equity line. Should I wish to delete the order or add stops or take profits, I follow the same procedure. Right click and select Modify / Delete order.
Finally, we’ll go through the same process to enter a stop entry order. Click New Order. Change the type to sell stop. Type in an appropriate price, which is any price worse than the current bid, and push ok.
You now see the stop entry on the screen.
You can start placing your own orders in a free MetaTrader practice account from OANDA. Click the link below this video to open your free demo account.