Order Types in MT4: A Guide
Traders in the Land Down Under can access the financial markets via MetaTrader 4, the industry’s most well-known and widely used trading platform in the continent. So, MetaTrader 4 trading platform in Australia is a forex trading platform developed by MetaQuotes Software Corp. It supports trading in CFDs and futures markets in Australia. Additionally, you can create and use automated trading strategies with MT4 since it offers a wide range of tools to aid in price analysis, trade placement, and management.
So, the time window for trading in the Kangaroo Country is from 10.00 AM to 4.00 PM in Australian Eastern Standard Time. Besides, the county is generally considered to be trader-friendly because of its trading laws and regulations. As such, there are many brokers in Australia that use the MT4 framework. And to make things even easier for traders in Australia, many brokers include a direct download link to their platform on their website. So, you can download the computer application from the developer’s website if you don’t already have it.
There are many advantages to using the MT4 platform in Australia, including creating your custom indicators for free.
Types of Orders
Stop loss and take profit orders can also be placed in MetaTrader 4 trading platform in Australia, in addition to making pending orders. Orders placed on the open market are used to ensure that the current price of a particular security can be purchased or sold. And as soon as your trade order is executed, the fundamental economic markets begin to change, and the trade position will follow suit. And in addition to the market order, you can place Stop Loss and Stronger Position orders; the implementation mode depends on the security you are trading.
Your brokerage company will have your authorisation to purchase securities at a specific price in the future if you place an order with them that says “Pending”. As long as the future quotes meet or exceed the predetermined level, this order can be used to open a trade position. Besides, pre-activated orders can automatically have Stop Damage and Take Profit orders attached to them.
So, MetaTrader 4 has four kinds of pending orders:
- Orders to buy at a limit are used when an investor believes that a security’s price, which has fallen back to a particular level, will rise in the future. A buy sequence can be executed if the current “ASK” price level is larger than the cost of a placed order.
- When the price of a security has reached a certain level, you can place a Buy-Stop order to ensure that the price will continue to rise. And to execute a buy order, the current “ASK” price level must be lower than the amount of the order placed.
- If the price of a security has recently risen, you might consider placing a sell limit order to lock in that price. And when a sell order is placed, the current “BID” price level must be lower than that of the positioned order for it to be executed.
- It is common for traders to place a Sell Stop order when they believe that the price of a security has recently fallen. A sell sequence can be executed if the current “BID” price level seems higher than the amount of the placed order.
Stop Loss and Take Earnings Orders
If the security price begins to move in an unprofitable direction, a Stop Loss order can help minimise your losses. And when a certain price level is met, the position is automatically closed.
In contrast, the goal of a Take Earnings order is to make a profit. And as soon as gains have been realised, the trade will be closed. As such, it can only be placed with a market or pending order and is always linked to an available spot or pending order.
