MTM – Module 6 Placing Trades

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Topic 1: Order Types

Long Order = Buy Order

Sell Order = Exit or Stop Loss

Short Order = Sell Order

Once you have decided to buy a currency pair, consider whether your buy order is a Stop or a Limit.

A Stop Order is one which is worse than the market price.
A Limit order is one which is better than the market price.

Buy Limit Order

When you buy at below the market price (when the current price is above your level of entry).

Buy Stop Order

When you buy at above the market price (when the current price is below your level of entry).

Why would anyone place a Buy Stop Order to buy the currency at a worse price? The reason being, if price gets to that level, then buying pressure is going to resume and the price is going to push up further, which would be profitable for our long position.

Short Entry Order

Your entry order for a short is a sell order

Stop Loss

Long-Sell-Limit — Long Sell Limit (Target) – Specifies a price at which you want to get out of a trade for a profit

Short-Buy-Limit — Going Short – Target is a Buy Limit

Long Orders can be split into two categories

Short Orders can also be placed into two categories

Topic 2: Placing the Trade

Orders for Going Long

Buy Stop – known as a pending or “if done” order. You specify a price that you would like to buy at above the current market price.
The Sell Stop is the price you sell for a loss if the trade goes against you.
The Sell Target is the price where you sell for a profit when the trade goes in your direction.

Orders for Going Short

Sell Stop – known as a pending order. You specify a price that you would like to buy at below the current market price.
The Buy Stop is your stop loss.
The Buy Limit is your target and the price where you will buy back your sell order.

If Done or Live Orders

If Done Orders are automated orders to tell your broker to buy or sell the underlying instrument when the market reaches your entry order prices. Usually used for end-of-day strategies, such as the MA Retrace.

Live Orders

Live Orders are the orders where you enter live into the market; you have to be next to the screen,. and these orders are usually used for intra-day trades, such as the Pivot-Bounce-Off-Trade.

It is now worthwhile catching this video from 08:45

Placing a Trade in MetaTrader 4

http://www.earnforex.com/position-size-calculator/

Trading LONG, be aware of the difference between a BUY STOP (on a pending order) which is above the current price and a BUY LIMIT (on a pending order) which is below the current price.

A BUY STOP is used when the current price is below your level of entry, and a BUY LIMIT is when the price is above your level of entry.