How to open and close trades in MetaTrader 4
Trading may seem difficult to the beginners but in fact the Eightcap’s MetaTrader platform is very user-friendly. Of course the very first step is to create an Eightcap account. Then, once you have installed MT 4, logged into your trading account with EightCap and successfully funded it, you are ready to start trading Forex, indices, commodities, CFDs and more. To master the basics of trading you first need to learn how to place orders in MT4. Opening and closing trades, learning how to set Stop Loss and Take Profit and taking advantage of MT4’s One Click trading panel are all essential skills for a new trader.
This MetaTrader 4 tutorial will help you to:
- Open and close orders on your MetaTrader 4 platform;
- Learn how to use the One Click Trading panel;
- Set up Pending orders;
- Set Stop Loss and Take Profit;
- How to use the Terminal window;
How to place orders in MetaTrader 4
Typically, placing orders in MetaTrader 4 is done via the Market Watch or the New Order button in the Toolbar.
You can open the Order window and modify your order by double-clicking or right-clicking on the instrument in the Market Watch.
How to use the Market Watch. Set up Stop Loss and Take Profit
In the Order window, you can modify your order in detail starting from the order volume (lot size) and setting up Stop Loss or Take Profit. If the Stop Loss or Take Profit you have set is too close to the price at the moment, the message “Invalid S/L or T/P” will be shown.
These two options are very useful in managing the risk so our guide on how to set up Stop Loss and Take Profit is a must-read for any trader.
In the “Symbol” field you can change the instrument you are trading from a drop-down list. On the left is the corresponding tick chart displaying the prices in real time. You can add a comment to the trade in the comments field.
Set up Limits and Stops in MT4
You can select either Market execution or Pending order in the “Type” field, which allows you to choose either Buy Limit, Sell Limit, Buy Stop or Sell Stop. You need to specify the price at which the order will be executed in the “At price” field. With one click on the arrows, the current price will automatically appear in the filed and you can simply adjust it. Along with the pending order settings, you can add Stop Loss and Take Profit levels. Click “Place” to submit. A message confirming the order execution will be displayed.
To enable an expiry date for your order make sure to tick the “Expiry” field and then select date and time. The time is always set to your local PC time.
How to close trades in MT4
You can close your already open trades from the Order window.
Use the MT4 charts to modify orders quickly
Alternatively, you can set pending orders from the context menu in the chart. You can also set or modify Take Profit or Stop Loss levels by clicking on the order price level on the chart and dragging it to the preferred price level.
Take Profit or Stop Loss can be set when you place the order or later via the Modify option. To modify them you can also use the Stop Loss and Take Profit lines on the chart by simply dragging them with the mouse.
How to do partial close in MetaTrader 4
The MetaTrader allows you to close positions partially. Just reduce the trading volume to the amount you want in the “Order” window.
Since partial closure is a different trading strategy it is considered very useful by traders. And of course we have a full guide on how to execute a partial close in MetaTrader 4.
Using the Terminal window
In the Terminal window, you can see your open orders and current balance in the Trade tab. With right-click on the trade in the Terminal or in the chart, you can select to close, modify the order or to add a trailing stop. In the Terminal you can also see when commissions or swap rates are applied, the Stop Loss and Take Profit that you have set, the time of the order, order number, and symbol. The price that you see after the “Symbol” column is the price, at which you placed the trade, and the second price (after the “T/P” column) is the market price. You will notice that it’s continuously updating, along with your profits.
If you don’t see your Terminal window, open it with the Terminal button in the Toolbar or use Ctr+T.
In the Account History tab in the Terminal, you can see all your previous trades.
Using the One Click Trading mode
Typically, placing orders in MetaTrader 4 is a 2-step process. But if you enable One Click Trading you will be able to execute trades with a single click and no secondary confirmation from the trader. To activate this option go to the “Tools” main menu and select “Options”.
Go to the “Trade” tab in the “Options” window and make sure that “One Click Trading” is ticked.
You can deactivate the mode at any time through the same procedure. If the One-Click Trading panel still doesn’t appear, right-click on the trade chart and select “One-Click Trading” from the menu or use Alt+T to open or close them.
In the One Click Trading panel, you can see SELL and BUY buttons and the corresponding current bid and ask prices. When the panel is red it means that the quotation at this moment is lower than the previous price. Blue means it’s higher. The panel remains grey when there’s no change in the price for 15 seconds. There is a white field between the buttons where you can set the order volume, starting with micro lots and going up to standard lots.
In One Click Trading mode, you can submit or close an order with:
- A single click of the SELL or BUY button on the panel attached to a chart.
- A click on the “x” to directly close orders from the Trade tab in the Terminal window. Right-click on the price level in the chart also opens a small window that lets you close the order without opening the Order window.
If you want to learn more about how One Click Trading works, please read our “What is one-click trading and how to enable it in MetaTrader 4?” guide.
Automated closure of trading positions
An open position will be automatically closed when the price reaches the Stop Loss or Take Profit level you have set. The same applies to Pending orders, which are also closed if they have an expiry date set.
Your broker may also close your positions if the market goes against you and your account margin level % reaches a certain level. This triggers a margin call and further loses can reach a liquidation level. Your largest losing position will be closed first. This is done to manage further risk to your account.