Here is a to-do list of actions to be taken as you place a trade
- Identify the pair to buy or sell
- Decide on the initial trade size (in Lots). Note that in MetaTrader, 1 lot is 100,000 currency units but it is possible to trade fractional lots
- Consider applying Stops or Limits (covered in the next chapter) information
- Open the trade
Let’s say that after spending some quality time looking at the charts of several currencies, you’ve concluded that EUR/USD is trending up. Therefore you decide to buy EUR/USD (equivalent to buying EUR/selling USD).
You can now verify the following parameters before executing this trade:
Instrument: This defaults to EUR/USD, because that is the instrument you clicked on. You can change the instrument you are buying in this field by clicking the “Symbol” drop down menu and selecting a different instrument.
Volume: The amount in Lots that you are going to buy. You can input a new number here, or use the arrow button to increase or decrease the lots size. 1 lot = 100,000 currency units. You can trade in 0.01 lot increments, so you could set the Volume to 10.57 lots, 1.00 lots, 0.5 lots, or any other number.
Stop Loss and Take Profit: Entering a price in either of these fields will place a Stop Loss and/or Take Profit order on this position, so that when it is executed, it already has these conditional orders attached to it. If you leave these fields at 0.0000, there is will be no pre-set Stop Loss or Take Profit, but you will have the opportunity to attach these orders later once the position is opened.
Type: This should remain set at “Instant Execution” in order to open a position at the current market.
Enable maximum deviation from quoted price: This is the amount of slippage, in pips, you are willing to accept on your trade execution. It defaults to “0” as any slippage with Alite Capital Markets is fairly rare. If the price changes by more than the Maximum Deviation while your trade is being processed, your trade will not be executed and you will be presented with a new price. One you have verified these New Order parameters, click “Buy” to buy at the Ask price, or “Sell” to sell at the Bid price. In this example, we are going to “Buy.”