A good trading platform can greatly impact your trading experience as well as your profit in a positive way! This is because trading platforms act as a medium that connects traders and investors to financial markets. So if you happen to get a good one, you can take advantage of their quality features, order types, fees and so on.
One of the most popular trading platforms around has got to be MetaTrader 4. This trading platform is popularly used for forex trading but also offers users access to other financial markets! Markets such as commodities, indices, cryptocurrency and even shares CFD.
But apart from offering advanced charting, tight raw spreads, and expert advisors, they also offer great order types to consider! So if you’re curious to know about their awesome order types, check out the list of 10 of them below!
1 – Market Order
A fundamentally and commonly used order type is a market order. This is an order used to buy or sell assets, may it be stocks, currency, bonds and so on, at the current market price. Market orders are well-known for their promptness and simplicity since they are made to be executed as soon as possible, usually within a few seconds, at the best price at the moment the order is placed.
2 – Limit Order
A limit order is a flexible type frequently used in trading and financial markets. By designating a certain price at which they are ready to enter or exit a position, it enables investors and traders to have a substantial amount of influence over their buy or sell operations.
3 – Stop Order
A stop order is a flexible instrument investors and traders use on financial markets. Based on pre-established price levels, this provides a useful way to start new positions or protect ones that already exist. This order type is crucial for risk management and carrying out trade strategies.
4 – Stop Limit-Order
The qualities of two orders are combined in this kind of arrangement. The stop order is one, while the limit order is the other. As a result, a flexible trading strategy is created. Basically, it works by setting a stop price first, and when the market hits that stop price, it initiates the execution of a limit order at a particular price level that you have also specified.
In a nutshell, it’s a two-step procedure meant to provide you with some kind of protection and control over your trading.
5 – Trailing Stop
For this order, you may create a stop price that changes in step with the market price using a trailing stop order. The stop price varies in accordance with market movements, assisting you in locking in profits.
6 – One Cancels the Other (OCO) Order
This order entails creating an association between two separate orders that are mutually exclusive. In this arrangement, when one of these orders is filled, the other is immediately cancelled. Investors and traders regularly use this cutting-edge trading strategy to effectively minimise risk as well as take advantage of profit chances.
7 – If-Done Order
This is the result of combining two orders. One order immediately activates the other when it is executed. You could, for instance, set up a purchase limit and a sell stop, with the buy limit taking precedence over the sale stop and vice versa.
8 – Buy Stop Limit and Sell Stop Limit
These are stop orders that, if they are fulfilled, transform into limit orders. The sell stop limit is positioned beneath the current market price, while the buy stop limit is positioned above it.
9 – Pending Orders (Buy Limit & Sell Limit)
These are orders to buy or sell at a particular price or better, but they are not effective in the market until the target price is met. The present price on the market serves as the purchase limit, while the sell limit is set above it.
10 – Partial Close
Even though it’s not a typical order type, MT4 lets you close down partially open positions. Thus, you may close out a portion of your trade while keeping the rest open and reap gains on the remainder.
Now you know 10 great order types MetaTrader 4 offers, you might want to consider them as an option when choosing a provider. All these order types are flexible and allow traders and investors control since you can customize them to your needs! But to efficiently trade along with these order types, you must learn each and every single one.