How to Trade Forex

Here you will learn how to make your first trade in Forex.

Executing trade is easy on MetaTrader 4.

MT4 can be downloaded from any broker for free (click here). You can use a demo account for learning purposes.

How is Forex trading executed on the trading platform?

Step 1: Select a pair you want to trade.

Step 2: Make an analysis.

Step 3: Select order/position (buy or sell).

Step 4: Close the order.

How to Buy and Sell

1. Click on the New Order button.
2. Select Symbol (pair).
3. Set your Volume (lot).
4. Set TP and SL prices, if any (can be ignored).
5. Click Buy or Sell.

How to close an order

1. Make sure you are on the Trade tab in the Terminal window.
2. Double-click on the profit value on the order row.
3. Click the Close button on the order popup display.

Alternatively, you can right-click on the order row and select Close Order.

Or you can just click x (see below).

Take Profit (TP)

• TP is placed at a price at which we want to take profit.
• When the price hits the TP that has been set, the order will close automatically.
• TP for Buy order must be above the current price.
• TP for Sell order must be below the current price.

Stop-Loss (SL)

• SL is placed at a price where we want to minimize losses.
• SL for Buy order must be below the current price.
• SL for Sell order must be above the current price.
• The order will close automatically when the price hits the SL that has been set.

How to set Take Profit and Stop Loss

You can set TP and SL when opening an order or modify an opened order.

Pending Order

Pending orders will be executed automatically when the price hits a predetermined level.

• Limit Order is an order where we expect the price to bounce back.
• Stop Order is an order in which we expect the price to continue in its direction.

• Buy Stop: Buy above the current price
• Buy Limit: Buy below the current price
• Sell Stop: Sell below the current price
• Sell Limit: Sell above the current price

How to place a Pending Order

1. Click on New Order.
2. Select Symbol (pair)
3. Set Volume (lot) value.
4. Set TP and SL prices, if any (can be ignored).
5. Select the order type: Pending Order.
6. Select the type of pending order: Buy Stop, Buy Limit, Sell Stop or Sell Limit.
7. Enter the price of the pending order.
8. Click the Place button.

Learn about the MT4 trade terminal

• Floating profit loss: The amount of profit or loss for still active trade. Take a look at the Profit column in your MT4.
• Balance: The amount of your capital before or after the trade.
• Equity: Balance +/– Floating profit loss. If your trade is profitable, equity will also increase and vice versa for losing trades.
• Margin: The amount of upfront capital required to open a position. Margin size depends on leverage. After you close the position, this margin amount will be returned to your account balance.
• Free margin: Equity – Margin. If there is no active trade, all capital (balance) is the free margin. If there is a trade and the trade is profitable, then the more free margin you have.
• Margin level: (Equity / Margin) x 100. Margin level is essential to determine whether you can open another position or not.