Forex Academy:
Middle School
5 minutes
Lesson 5
How to close market orders
- How to close a market order?
- How to close a market order on the MetaTrader 4 application?
How to close market orders
A completed trade transaction includes the following 2 steps:
Step 1: Place a BUY order.
Step 2: Close the BUY order.
A trade is considered completed when you place an order and close the placed order.
Until the trade is completed, the profit will not be calculated.
For example:
How to Calculate Profit
Profit (or Loss) = (Selling Price – Purchase Price) × Trade Volume
Trade 0.01 lots EUR/USD
1. Place a buy order at 1.13449.
2. 15 minutes later, the rate increases and you decide to close the order when the rate reaches 1.13779.
Calculation: 0.01Lot = 1,000 units
1,000 units x (1.13779 -1.3449) = 3.3 USD profit
After closing the order, 3.3 USD profit will be added to the account balance.
If you trade 10 times 0.01 Lot (0.1 Lot), you can get a profit of 33 USD in 15 minutes.
Note:
If you have opened a BUY order, even if you place a new SELL order, your BUY order will not be closed and the profit will not be calculated.
For example:
Trade 0.01 lot EUR/USD
A) Place a buy order at 1.13449.
B) After 15 minutes, you want to close the order when the rate has increased to 1.13779. If you place a new sell order instead of closing the previous buy order at 1.13779, you will have 2 orders at the moment (1 buy order and 1 sell order)
To close an order, you must perform a closing order action.
In the next section, we will show you how to close market orders on the MetaTrader 4 application.
How to close a market order
on the MetaTrader 4 application?
MetaTrader4 Desktop Version
In this video, we will show you how to close a market order on MetaTrader4 desktop version.
MetaTrader4 Android version
In this video, we will show you how to close a market order on MetaTrader4 Android version.
The lesson on ”How to close market orders?” ends here!
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In the next lesson, we will guide you about Short-term and Long-term trading.
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