Archive for commodity trading

Before You Download Metatrader – Complex Orders Explained

Sunday, September 27th, 2009

Whilst the metatrader platform is an excellent all round trading platform which will make your commodity trading and currencies trading faster and more efficient, it is in managing and processing automated orders, that the metatrader 4 software really excels, and when combined with all the metrader indicators and expert advisers, is the only trading platform worth considering in my view. However, before you download metatrader for yourself, let me try to explain some of the more complex orders that are available on the metatrader 4 platform. Having looked at market orders which are executed immediately, the second, and more complex order types are those called pending, where the order is only executed on the trading system, should the criteria associated with the order be met in full.

In pending orders there are four types that you need to understand when using the MT4 platform, and these are the buy limit, buy stop, sell limit and sell stop, all of which are triggered on a condition or price being achieved. The first of these is the buy limit order, which is used when you wish to enter an order, but to buy below the current market price, so in other words when you think the market may fall but then rise again. The buy stop order is the opposite of the the buy limit, and is used when you wish to buy above the current price. Both the above orders will be triggered if the price crosses the price selected in the order. The converse of buy orders is of course sell orders, and again we have two types, the sell limit order, which is a sell order above the current market price and is placed to get into a short position but where you believe the market may rise before falling again, and finally a sell stop order which is used to enter a position below the current market price where you believe the market may continue to fall further, and once a specific price has been reached.

To place a pending order on your metatrader 4 platform, simply double click on the currencies in the market watch window on the left hand side of the screen, and select the appropriate forex pair and then double click. This will open your trading window as before, but this time we are going to select the pending order in the drop down menu in the ‘type’ selection option. As this is a more complex order, there are several decisions we need to make before the order is actioned and ‘live’ on the metatrader 4 software.  As before we need to check we have the correct currencies, and then choose our volume option, followed by our stop loss and take profit selections. Below this we then need to select the type of pending order which will be one of the four above from the drop down menu below, and choose the price for the selection. Finally we need to choose an expiry which can be indefinite or with an expiry time or date, from minutes to hours or days. However, it is your responsibility to ensure that you do not leave orders on your metatrader system which are then subsequently triggered as you forgot to close them out – this happens all the time – trust me I have done it myself so be careful. All your pending and market orders will appear on your home screen so there is no excuse with metatrader.

Now before you go ahead and download metatrader and get started, one final point about order fills, which is always a thorny subject with currency and commodity traders, and is often called slippage. When you place your pending orders on your MT4 system, they may get filled at this price level, or they may not, this is conditional on the speed of the market that applies at the time your price is triggered. Your metatrader broker will always try to do their best, but in certain condition when markets are moving fast then order fill can and do slip, so please be aware and don’t blame your broker.

If you are considering trading in the oil markets it is essential to use the best trading platform, and in my view there is only one worth considering, and that’s Metatrader 4. As one of the most advanced, yet intuitive, trading platforms available MT4 offers sophistication combined with simple order entry, execution and stop loss management and can be used with a host of expert advisors. Secondly, of course, it is so important to have an account with a reputable broker who offers ECN execution – in other words your trades are entered automatically into the market with no dealer or broker intervention. The MT4 platform from ODL offers all the above so why not download your free demo copy of the metatrader 4 software by clicking on the following link, download metatrader free, and get started today.

Before You Download Metatrader – Simple Order Types Explained

Sunday, September 27th, 2009

Before you go ahead and download metatrader, it is important to understand the various types of orders  available  for you to use in your commodity trading or foreign exchange trading, and this is particularly important with metatrader 4, as many of these orders can be automated, so you really do need to make sure you understand each type before going ahead and trading!

In metatrader 4, there are two basic types of orders, namely instant and pending, and as their names imply, the first is executed instantly, whilst the second is conditional based on criteria that you attach to the order. It is also important to note that whether you use an instant order, or a pending order, both can be used to open and close positions within the metatrader 4 software. Beneath these two broad groups of orders we the have three different types namely, market orders, limit orders, and stop orders, and we will look at each of these separately in a seperate post, but firstly let’s look at the ways to enter orders on metatrader 4.

One of the beauties of the metatrader 4 platform, and the reason I use it exclusively myself is the ease with which you can enter your trades, whether you are trading in commodities or currencies.  The simplest and quickest way is simply to select your pair in the market watch window to the left of the screen, double click, and this will automatically open your order window with the tick chart and all the order options. A second way is to right click on the chart, select trading, and new order in the drop down menu. The third option is to select the ‘new order’ tabe in the top navigation panel at the top of the screen, and finally simply hit F9, which again will pop up the order box. So as I say, when you download metatrader, try all these options for yourself as it is one of the great features of the metatrader platform and software, making it easy to place and manage your trades.

As you will see when you download metatrader, immediate execution orders are relatively simple to complete with few options available, however you will still need to be careful when opening your first trade. Having opened the trading window, check that this is the correct pair of currencies in the symbol tab, and then choose your trading volume size, remembering that 1 denotes a full lot size, so is equivalent to 100,000 USD or $10 per pip on a euro vs dollar contract for example. If you are used to trading a forex mini account, then you will need to select the 0.1 which is 1/10th a standard lot size or $1 per pip on the same example as above. You will then need to select your stop loss position, and this will be indicated on the left hand side of the screen on the tick chart, along with a take profit position, which again will be indicated on the chart if selected. Once the order has been set up you then select sell, or buy to go long or short on the forex chart. You can of course amend open orders should you forget to set up a stop loss, or to add a profit target but I will deal with this in another post on the metatrader 4 platform soon, or possibly in a video which may be easier to explain.

If you would like to practice , why not download metatrader now just by clicking on the link, and start using the best online trading software for both your commodity trading and also for currencies in your own demo account.