Forex is taking Nigeria by the storm. Today, remote work opportunities are vital. Trading is more appealing than ever, as it can be done from any device. The MetaTrader platform is chosen by experts across the world. Its fifth version is a sophisticated and powerful environment. Here are the basics of its use.
You Need an Account
To access the global market, traders need to open a live account. They may also use a demo account for training purposes. Here is how this compares.
Never skip the demo stage. Even traders who are familiar with MT4 should first explore the other version. It is more advanced, so the interface differs. Newbies, on the other hand, are advised to spend several weeks in the demo mode. The urge to start live trading is strong. Still, you may regret it if you start too early.
Any reputable brokerage offers demo trading. Create a free account in a couple of minutes, and check your inbox. As a rule, login and password are emailed immediately. When you sign in on the platform, it will work in the risk-free mode. You can see a simulation of real trading and practise as long as necessary.
Make the switch to live when you are absolutely sure of your skills. Upload a few documents, as brokers need to verify your identity. The Forextime company emails the credentials once your request is approved. You may also get the software from their website - MT5 download is free! Make a deposit, log in, and enter the global marketplace!
Place Your First Order
In MT5, orders may be placed in four ways. Each of these summons a special 'Order Screen' window. This has a chart with Ask and Bid prices on the left and order fields on the right.
Click the 'Tool' button in the Menu and choose the 'New Order' option.
Double-click on the instrument in the Market Watch window.
Right-click on the 'Trade' tab and choose 'New Order'.
Press F9 on the chart of the instrument for 1-click trading.
There are five parameters to fill for every trade. Pay special attention to Take Profit and Stop Loss. These are risk management options that must be specified for every position. They protect you against unfavourable conditions.
'Symbol' refers to the instrument you are trading - e.g., a currency pair.
'Order Type': choose Market Execution for immediate results or Pending Execution for closing at a pre-defined level.
'Volume' is the number of lots you will trade. Commonly, a single lot includes 100,000 units.
'Stop Loss' and 'Take Profit' reduce potential risks. Stop Loss is activated in a falling market when the price is moving against you. Take Profit allows you to book a profit level in the opposite situation. It is also possible to close manually.
'Comment': this field is used for any notes regarding the order.
MetaTrader 5 - Order Types
Market orders are closed at the current market price. Pending orders are instructions to your broker to execute in the future at the desired price level. MT5 has 6 order types (in comparison, there are only 4 on MT4).
Buy Stop vs. Buy Limit
These are used for long positions. With Buy Stop, you want to execute above the market price. This is chosen when further growth is expected. Buy Limit means the price will be lower than the current level. In this case, you expect the trend to reverse.
Sell Stop vs. Sell Limit
These are used for short positions. Sell Stop gives you a price below the current level. Choose it if you think the decrease will continue. Sell Limit gives a higher price than the current one. This means that you expect the price to start falling.
Buy Stop Limit vs. Sell Stop Limit
These are combinations of orders which prevent slippage. With Buy Stop Limit, you choose a price above the current level. A Buy Limit order is placed when it is reached.
Sell Stop Limit is set at a price below the current level. A Sell Limit order is placed when it is reached.
Trade Any Time and From Anywhere
MetaTrader 5 is not just a desktop environment. The system comes in three versions: desktop software, mobile app, and web-based platform. Its functionality allows cross-platform use. This means you can manage the same trade from different devices. The online version does not require any downloads at all!
MT5 allows you to create diverse portfolios. Do not limit your choice to currency pairs. Once you master the art of Forex, try other options. The system facilitates the trading of CFDs, stocks, precious metals, and more. It is packed with indicators, charts, and other aids that help you spot the best entry and exit points.