MetaTrader 4 - Volume

 

MT4 allows you

to trade on the international currency markets,

no matter where you are!

MT4 Logo

 

 

At first glance the MetaTrader 4 program interface can look overwhelming with all the icons on it.

 

Fortunately it is easy to learn how to use Metatrader as there is a lot of help available.

 

 

Trading with the correct Volume

 

 

Whenever you want to activate a trade, you must type in the amount of money you want to trade with. The amount is called Volume.

 

 

MT4 provides you with several methods to activate a trade:

 

1. Using the New Order window

 

The normal position for the New Order icon is just below the menu items Window and Help at the top of the screen.

 

If you click on the New Order icon it will open the Order Window:

 

 

Shortcut key to open the Order Window: Press F9

 

Volume is the second item from the top in the Order Window.

 

 

2. Using the quick select buttons at the top left of a graph

 

 

Volume is the number in the white block.

 

 

The amount of money involved in a transaction is determined by the type of account you are using:

 

 

a. Standard Account: 1 Lot = $1,000.00 of your money which transfers $100,000.00 internationally.

 

Volume          Your Money             Pipvalue                Transfer International

1.00                 $1,000.00                $10.00                    $100,000.00

0.10                 $   100.00                $ 1.00                     $ 10,000.00

0.01                 $    10.00                  $0.10                     $  1,000.00

 

 

b. Mini Account: 1 Lot = $100.00 of your money which transfers $10,000.00 internationally.

 

Volume          Your Money             Pipvalue                Transfer International

1.00                 $   100.00                $ 1.00                     $ 10,000.00

0.10                 $     10.00                $0.10                      $  1,000.00

0.01                 $      1.00                 $0.01                      $    100.00

 

 

c. Micro Account: 1 Lot = $100.00 of your money which transfers $1,000.00 internationally.

 

Volume          Your Money             Pipvalue                Transfer International

1.00                 $     10.00                  $0.10                      $  1,000.00

0.10                 $      1.00                   $0.01                      $    100.00

0.01                 $      0.10                 $0.001                      $      10.00

 

 

So :

on a standard account a volume of 1.00 represents $1,000.00 of your money,

on a mini account a volume of 1.00 represents $100.00 of your money,

and on a micro account a volume of 1.00 represents $10.00 of your money

 

 

How do you know you are on a micro account and not a standard account or mini account?

 

First of all when you apply for an account, you will register for a standard / professional, mini of micro account.

 

 

If you are uncertain about the type of account, follow these steps to determine the type of account:

 

In MT4 right click in the Market Watch Window on any currency combination.

Select Symbols in the popup window

Alternatively use the shortcut key combination: Press Ctrl and U together to open the Symbols Window.

 

In the Symbols Window select a currency combination, then click on Properties.

 

If Contract size = 100 000 then you are on a standard account and use the calculations in the first set above

 

 

 

 

<= The contract size is 100 000,

therefore this is a standard account

where volume 1.00 = $1,000.00

of your money.

 

 

If Contract size = 10 000 then you are on a mini account and use the calculations in the 2nd set above.

 

If Contract size = 1 000 then you are on a micro account and use the calculations in the 3rd set above.

 

You must decide yourself with what amount youd like to trade (never more than 10% of account size) and set the volume accordingly.

 

If you are on a Standard account and would like to trade for example with $50.00, then you will change Volume to 0.05

 

 

NOW: SET MT4 to display pips.

 

In the Terminal Window (bottom of screen) right click in the Trade Tab.

Select Profit and set to As Points

MT4 will now show next to a trade the points and below that the Money Value.

If it shows for example 25 points then it is 2.5 pips.

 

 

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Disclaimer

 

Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

 

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