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Before You Download Metatrader – Simple Order Types Explained

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.