The platform has been set up, we know now how to change the visual settings of the chart, change the timeframe and add the market symbol we want to trade, and we can now focus on Metatrader’s trading orders.
We can enter the market in two ways:
- Market order – immediately
- Limit order – at the price specified by us
You will use the market order once the market is in an interesting moment and you want to enter the market immediately. In that case, you can choose to BUY, if you want to buy a financial instrument and you expect further growth or SELL if you expect a decrease in the price of the instrument.
Tip: If you do not have the red bar for performing market orders in your Metatrader, click on the small black triangle on the left-hand side next to the market name and the panel will appear.
What happens right after pressing BUY or SELL button?
You enter the market and immediately you will be at a loss. How is it possible? Ask your broker. The cause is spread, which is automatically added to the entry price and which represents the market entry fee for your broker.
Currency pairs have different spreads. From 1 pip to 3-5 pips. If you choose a position size of 0.10 lot, for example, and you enter the trade, you will have a spread of 1 pip for example, and immediate loss of $ 1 dollar (if we have a USD account). This cannot be avoided, and you have to count with it. Therefore, when choosing a broker, consider the size of the spread they charge you for entering the market.
Sell limit & Buy stop vs. Buy limit & Sell stop
If you plan your trades in future and you do not want to enter using the Market order, you can use the pending orders.
The market will be at 1.49 and you decide you want to enter at 1.50 and you expect to grow, then you will enter the trade with “BUY STOP”. The BUY STOP command means that if price continues to grow after penetrating level 1.50, you will be in profit.
In the opposite situation, when the price would be at 1.49 and you would like to sell at 1.50, you would use the “SELL LIMIT” command and you would enter the trade at the moment when the price hits 1.50.
The picture makes it all clear.
How to set a limit order?
There are two ways.
The first way is to right-click the market chart directly:
Tip: Go to your Metatrader platform and see how the limit order automatically changes according to where you are on the chart. If you click above the current price, you will automatically see “Sell limit”, but if you click below the current price in the chart, instead of Sell limit you will have “Buy limit“.
The second way: Through the trading window
Choose the market, open it, and click on “New Order” to see:
- Position size
- Stop loss and profit target
- Type: – Switch to Pending order here
- Order Type: Here you can choose whether it is the limit sell & buy, stop sell & buy
Then just click “make order” and you are in the market
Some advice at the end:
If you’re in the market, you can move your profit target and stop loss with your mouse. Simply click on the level line of the stop loss for example, and move it to a different level.