Position Open and Close

Opening a position

To start trading, you need to open a position in a specific market instrument. There are two ways of doing this:
  • Create a market order – this is executed immediately
  • Create a pending order – this is executed once the price reaches a level that you specify
This section deals with market orders. Information on how to open a pending orders.

Opening an order

To place a market order, you first need to open a new order. You can do this in any of the following ways:
  • Select ‘New Order’ from the ‘Tools’ menu
  • Press F9
  • Double-click on the symbol you want in the ‘Market Watch’ window
  • Select ‘New Order’ from the ‘Market Watch’ window’s context menu
  • Select ‘New Order’ from the ‘Trade’ tab’s context menu in the ‘Terminal’ window
  • Press the New order button icon button in the ‘Standard’ toolbar
Open order window in MT4

Figure 1. ‘Order’

Window The ‘Order’ window has the parameters shown in table below.

Parameter Description Mandatory/Optional
Symbol The market instrument you want to trade. Mandatory
Volume The amount you want to trade – in lots. Mandatory
Stop Loss The price to close at if you’re making a loss. Note that this is the bid price for long positions and the ask price for short positions. A value of ’0′ indicates no stop loss. Optional
Take Profit The price to close at if you’re making a profit. Note that this is the bid price for long positions and the ask price for short positions. A value of ’0′ indicates no take profit. Optional
Comment Text up to 25 characters. You can’t change this once your order is placed, and we may modify or overwrite it. Optional
Type Set this to ‘Instant Execution’. Mandatory

Maximum deviation

Once you set the ‘Type’ to ‘Instant Execution’ the bottom panel of the window will contain additional parameters related to maximum deviation:
  • This is used if the price changes between the time you open the window and the time you place your order
  • We will reject your order and issue a new quote if the price difference is greater than the amount you specify
  • Tick the checkbox and enter the maximum deviation in pips to enable this feature

Placing your order

Once you have entered all the parameters, do one of the following:
  • Press the ‘Buy’ button to open a long position at the current ask price
  • Press the ‘Sell’ button to open a short position at the current bid price
Your order will be sent to us and we will check it. We will reject the order if:
  • You don’t have sufficient margin in your account
  • The price has changed and the difference is more than the specified maximum deviation
  • The ‘Stop Loss’ or ‘Take Profit’ is too close to the current market price
In the last case, you will receive an ‘Invalid S/L or T/P’ message. You will need to adjust these levels and resubmit your order. Otherwise, we will execute your order and set the stop loss and take profit levels. You will see the following:
  • The status bar for your new position will appear in the ‘Terminal’ window’s ‘Trade’ tab
  • The opening price will be displayed on the corresponding chart
  • The stop loss and take profit levels will also be displayed on the chart

Note that trade information is only displayed on charts if you have enabled the ‘Show trade levels’ option.

Metatrader 4 terminal window

Figure 2. ‘Terminal’ Window

Request orders

For some symbols, you need to request a quote before you can trade:
  • Press the ‘Request’ button in the ‘Order’ window
  • The quote you receive will only be valid for a few seconds
  • The ‘Buy’ and ‘Sell’ buttons will be greyed out if you don’t make your trade in time

Closing a position

To take your profits or losses, you need to close your position. This can happen in the following ways:
  • Automatically
  • When you close you position manually
In all cases, information about your closed position will appear in the ‘Terminal’ window’s ‘Account History’ tab.

Automatic closing

We will close your position automatically under the following conditions:
  • The current bid price is equal to your stop loss or take profit level on a long position
  • The current ask price is equal to your stop loss or take profit level on a short position
  • When current prices cause your account to reach the stop out level we have set

Manually closing a single position

To close a position manually, first open the order window for the position. You can do this in the following ways from the ‘Terminal’ window’s ‘Trade’ tab:
  • Right-click on the position and select ‘Close Order’ from the context menu
  • Double-click on the position with the left mouse button
Once the ‘Order’ window is open, do the following to close the position:
  • Set the ‘Type’ to ‘Instant Execution’
  • Press the ‘Close’ button
You can also partially close positions by doing the following:
  • Set the ‘Volume’ to the partial amount you want to close
  • Press the ‘Close’ button
For some symbols, you need to request a quote before you can close the position:
  • Press the ‘Request’ button in the ‘Order’ window
  • The quote your receive will only be valid for a few seconds
  • The ‘Close’ button will be greyed out if you don’t make your trade in time
Note that MetaTrader 4 displays bid prices on charts by default. To display ask prices, you need to enable the ‘Show Ask Line’ option in the terminal settings.

Closing opposite positions

When you have both a long and a short position in an market instrument, these are known as opposite positions. With MetaTrader 4, you can close both positions simultaneously, so that you aren’t left with one position open for a period of time after you close the first position.

To close opposite positions, do the following:

  • Open the ‘Order’ window
  • Set the ‘Type’ to ‘Close By’
  • A list of your open positions will appear in the bottom half of the window
  • Select the two opposite positions you want to close
  • Press the ‘Close’ button
You can close opposite positions even if they aren’t equal in size. You will be left with the remainder of the larger position. Here’s an example:
  • You sold EURUSD and have a short position of 10 lots at 1.4050
  • You bought EURUSD and have a long position of 12 lots at 1.3950
  • You close the two opposite positions
  • You are left with a long position of two lots at 1.3950
Close by Opposite Positions in MT4

Figure 3. Closing Opposite Positions

Note that when you close opposite positions, they will appear in the ‘Terminal’ window’s ‘Account History’ tab, and information about the opposite positions will appear in the ‘Comment’ field.

Closing multiple opposite positions

Above, you were able to close a single pair of opposite positions. However, you can also close multiple opposite positions using the following method:
  • Open the ‘Order’ window
  • Set the ‘Type’ to ‘Multiple Close By’
  • A list of your open positions will appear in the bottom half of the window
  • Select the pairs of opposite positions you want to close
  • Press the ‘Close’ button
Again, you can close opposite positions even if they aren’t the same size.