Identifying The Different Types of Execution Modes and Order Types in MetaTrader 4
If you browse the web, you will be amazed to find a lot of trading platforms with very amazing features and upgrades. But amidst all these trading platforms, there is one that excels and has been used by a lot of traders for so many years – the MetaTrader 4.
Despite the release of its newer trading platform from the same company, MetaQuotes, MT4 remains to be the most preferred trading platform especially for Forex and CFD traders.
The MetaTrader 4
MT4 is a trading platform that’s boosted with state-of-the-art trading tools and features that’s greatly loved by traders since its release in 2005. Also, brokerages offer this trading platform to their clients across the world. MT4 was developed by MetaQuotes Software and can be used by traders when performing tasks such as opening and closing of trading positions as well as managing the market positions using a financial mediator.
What’s The Greatest Edge of MetaTrader 4 Among Other Trading Platforms?
There are three trading execution modes supported by MT4. It also supports two markets, two stop orders, four pending orders, and a trailing stop function. All of these are quick trading functions allowing traders to send trading orders from the chart just with one click or a few clicks. Another advantage of MT4 is its built-in tick chart feature which perfectly determines the right entry and exit points.
Trade Execution Modes Used in MT4
There are three execution modes in MT4, namely; Instant Execution, Execution by Market, and Execution on Request.
The instant Execution mode is responsible for performing an order based on the price which is being offered to the Forex broker.
The Execution by Market is a mode that helps you relinquish your authority to your trading broker. This mode gives power to the broker in making important decisions with regards to order execution price without the need to further discuss it with the trader.
The Execution on Request is a mode that executes at a price as to the amount that the broker has previously provided.
Order Types in MetaTrader 4
Different types of orders are available in MetaTrader 4. These orders include market Order, Pending Order, Stop Loss Order, and Take Profit Order.
Market orders guarantee that the brokerage company is allowed to buy or sell on your behalf. When this order is made, you will notice that the trade position will start to move as it tracks the changes that took place in the financial market.
Pending Order gives the broker the right to buy and sell instead of you, the trader, at an already determined price. This order also allows the opening of a trading position as long as the future quotes reach the predetermined level.
Stop Loss Order helps minimize the losses incurred once the security price starts to move against you. Once the set price level is reached, the trading position will close down automatically.
Take Profit Order is an order that is intended to gain profit. Once the set profit level is reached, the trading position closes down automatically.
