Navigating the MT4

Overview

▪ MT4 Features (Tool Bar, Market Watch, Chart

Window, Navigator Window, Terminal)
▪ Key Terms
▪ Open New Order
▪ TP and SL
▪ Trailing Stop
▪ Pending Orders
 Tool Bar

Market
watch

Main Chart

Navigation
Area

Terminal
 Tool Bar Where you can place new order, set different time frames
,select indicators and other chart-plotting tools.
Market Watch It displays all tradable instruments the broker provides to
clients which includes currency pairs , commodities , metals
and indices.
Navigation Area It displays any and all accounts logged in to the terminal.

Main Chart It displays the market price movement and can be viewed by
a given time.

Terminal Which displays all the trading information of the client. It

shows all open trades , balance, equity , free margin, margin
and margin level.
 KEY DEFINITIOMS
Base Currency This is the first currency quoted in any currency pair. It represents
the currency you are buying or selling as the case may be. Eg.
EURUSD, EUR is the base currency.
Counter/Quote This is the second currency quoted in a pair. Eg. EURUSD, USD is
Currency the quote currency.
Buy Go Long (Bulls): Buying a currency pair

Sell Go Short (Bears) : Selling a currency pair

Bid The Bid Price is what buyers are willing to pay for a currency pair.
If you are selling a currency pair, you will get the bid price.
Ask The ask price is what sellers are willing to take for a currency pair.
If you are buying a currency pair, you will get the ask price.
 Ask= Buying
Note: Ask price is always higher
than bid price.
Bid= Selling
 KEY DEFINITIOMS
Pip This stands for percentage in price. It means smallest price
increment a pair can make. 0.0001 for most currencies, 0.01 for
JPY.
Fractional pip or A fractional pip is 1/10 of pip. 0.0001 is the point of 0.001 for JPY.
point
Spread It is the difference between the bid and ask price. It represents the
broker’s profits in a transaction.
Trading Size Currencies are traded in fixed contract sizes called lot sizes or
simply lots. A standard lot size is 100,000 units of the base
currency. A mini-lot is 10,000 units and the micro lot which is the
smallest tradable size is 1,000 units of the base currency.
Balance Balance shows the total financial result of fully executed
transactions and deposit/withdrawal to and from an account.
Equity Equity shows the secure part of clients account. It shows your
balance +/- open positions and +/- swap.
 STANDARD LOT MINI LOT MICRO LOT
1.O -above 0.10-0.99 0.01-0.09

EX. BUY 8.0 lot of EX. BUY 0.30 lot of EX. BUY 0.04 lot of
GBP/NZD EUR/JPY USD/CHF
=800,000 GBP ag NZD =30,000 EURO ag JPY =4,000 USD ag CHF
Just right click the currency pair and
choose the spread it will automatically
show the spread for each currency pair.
 Spread- It is the difference between
Spread
the bid and ask price. It represents the
broker’s profits in a transactions.
Ex. 4207 its actually read as 420.7 pips
33 its actually read as 3.3 pips
Note: Avoid the currency with high in
spread especially the exotic because
it’s a Low Volatile and high in spread.
Balance- is the actual money
put as an investment . If the
broker’s provide a Leverage in
Demo Account its 1:100
Live Account maybe 1:400 it
depends on the brokers.

Ex. $10,000 with leverage

$100 x 100 = $10,000
Equity- Can be computed as
+ (profit) or – (loss) of your
balance .

Ex. $10,000 +55+22-61.42=

$10,015.58
 Margin The required funds that a client will need to open a position.

Free Margin Amount of money in the client’s account that can be used for
trading

Margin Level Stated in percentage, it determines the condition of the clients

accounts. Margin Level= Equity/Margin x 100

Margin Call This is warning from your broker that your account has slipped
passed the required margin in percentage and there is not enough
equity left.

Stop out Level After your margin call , and your margin level continues to drop,
your positions will be closed to avoid complete loss on your
account.
Margin - The required funds that a client will need
to open a position (standard/Mini/Micro)
- is collateral in order for you to trade.
Margin= # of units / Leverage

Ex. = $100,000 units if you are trading (standard

lot) / 100 Leverage for demo account and 1:400
Live account
$100,000/100= $1,000
if Live account $100,000 / 400 = $250 only is the
required margin for a standard lot with a leverage
of 400.
Free Margin – The remaining funds in the clients
account that can be used for trading..
Margin Level: Margin Call or Stop Out Level :

Margin Call- If margin level reach 100% it means that the gray
line turns into Light Red it’s a warning means you have a lot of
open trades that is negative.
Stop out Call- ex.
Stop out Call- If margin level reach 30% all -200
trade are in loss or negative and it -150
automatically remove the highest negative -100
trade or loss. -500
-300
-500 will automatically
 Leverage Leverage is used to increase the buying of a trader, even if they
can only provide a small deposit. It also increases the potential
risk of losses.

Bull Market A financial market condition in which prices are rising or expected
to rise.
Bear Market A market Condition in which prices are falling or expected to fall.

Requote In the forex world, it means that the broker you are dealing with is
not able to give you a traded based upon the price you requested.
Generally this happens in a fast-moving market.
Slippage Slippage occurs when a limit order or stop loss executes at a
worse rate than originally set in the order, usually during high
volatility. In this situation, most forex brokers will execute the
trade at the next best price.
Requote- In the forex world, it means that the
broker you are dealing with is not able to give you a
traded based upon the price you requested. Generally
this happens in a fast-moving market.
Ex. AUDUSD
You want a current price of 1.12345 but before you
click the buy to execute the trade the market is too
volatile then the MT4 gave you 1.12355. that is
requote
In Take PROFIT Slippage happens
when you put a Take Profit at $100
but it didn’t close and the market is
too volatile you will earn more than
a $100 because of slippage.

In STOP LOSS Slippage happens

when you put a Stop Loss at- $50
but the market is too volatile you
will loss more than a -$50 because of
slippage .
How to execute a trade in MT4
Market Execution- click
if you will place an order
immediately either buy
or sell.
This indicate if your order is
successful either buy or sell.