How to open a Forex trade.
In the previous lessons in the "Forex Basics" section, we covered almost all the preparatory aspects of trading. Now it's time to get started.
Opening a Forex trade is quite simple, especially if you already have a trading terminal installed and a demo account registered.
It's best to study technical aspects on a demo account; it works just like a real one, but you're completely protected from mistakes.
Opening a new trade in MetaTrader 4.
The easiest way to open a new trade is to press F9 in the running trader terminal, but you can also click the "New Order" tab in the program's top menu. A window will then appear where you can set the parameters for the new position.
1 - Select the currency pair for which to open the trade. By default, the window immediately displays the pair on the active chart.
2 - The trade volume in lots is determined based on available funds and leverage. For example, opening a 1-lot trade requires $100,000. You have $500 in your account with a leverage of 1:100, meaning you have approximately $50,000 available, so open a 0.5-lot trade.
If your order is rejected, simply reduce the trade volume.
3 - Stop Orders: Enter your stop loss and take profit. If they are triggered, the trade will close automatically.
4 - Trade Type (instant execution or pending order). With instant execution, the trade will open immediately; with a pending order, it will only open if the specified parameters are triggered. For more information on Forex order types, see the next article.
5 - Sell or Buy: Clicking one of the buttons opens a Sell order, or a Buy order.
6 - Maximum Deviation: Using this function, you can significantly reduce the number of requotes, but the order will open slightly beyond the specified price. For example, if you click Buy at 1.3545, the deviation is set to 2 pips. By that time, the price has risen to 1.3547, but your order will still open. If this function is disabled, you will receive a refusal and a prompt to open the trade at a new price.
These are practically all the settings you need to configure to open a Forex trade. After you click Sell or Buy, your open order and its description will be displayed on the Trade tab.
