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Before You Download Metatrader – Complex Orders Explained

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.