Foreign Exchange FOREX Instructor: Saeed Ebrahimijam

1. Lab. Lecture 2. FINA417- Technical Analysis and Algorithmic Trading Foreign Exchange FOREX Instructor: SaeedEbrahimijam

2. Contents • How to download meta trader. • How to Install and setup. • How to register Demo account. • How to use Metatrader platform.

3. Where to download platform • www.metatrader5.com • Free download the platform

4. Open a Demo Account

7. Get username and password for Demo

8. Login to the market

10. How to see charts of a pair

11. Different types of charts Bar chart Candle stick chart Line chart

12. Time frames

13. Indicator tools

14. Save the template • Save as a CSV file (excel) • Save as a picture

15. Open a pending order position • New Order

16. Pending order form contents • Symbol • Type • Volume • Price • Stop loss • Take profit • Expiration (good-til-cancelled (GTC))

17. Trading process • Two types of orders: - Instant Execution (Market order): Buy/Sell in current market price - Pending order: it is based on two parameters of price and time.

18. Types of Order (Stop and Limit) • Buy limit : when a trader is willing to buy at a specific price, lower than market price. • Sell limit : when a trader is willing to sell at a specific price, higher than market price. • Buy stop : when a trader is willing to buy at a specific price, higher than market price. • Sell stop : when a trader is willing to sell at a specific price, lower than market price.

19. Limit orders • The trader will use limit orders whenever find out that the trend will change it’s direction and reverse after touching a resistant or support line. • Buy limit offer • Sell limit offer

20. Sell limit order • when a trader is willing to sell at a specific price, higher than market price. • The order is applied when the market trend is upward. But trader believes that the trend will continue to specific level and after touching the resistance line the trend will reverse.

21. Buy limit order • when a trader is willing to buy at a specific price, lower than market price. • The order is applied when the market trend is downward. But trader believes that the trend will continue to specific level and after touching the support line the trend will reverse.

22. Stop Orders • When the trader believes that the up/down trend will cross a specific level of support and resistance, consolidates and keeps on it, the trader can get the stop positions. • Sell stop • Buy stop

23. Sell Stop order • The order is applied when the market is downtrend. The instruction is to sell at the best available price after the price goes below the stop price. • A sell stop price is always below the current market price. • when a trader is willing to sell at a specific price, lower than market price.

24. Buy Stop order • when a trader is willing to buy at a specific price, higher than market price. • A buy stop price is always above the current market price. The order is applied when the market is uptrend. • It is typically used to limit a loss (or to protect an existing profit) on a short sale.

25. Stop Limit Order • A stop limit order combines the features of a stop order and a limit order. Once the stop price is reached, the stop-limit order becomes a limit order to buy (or to sell) at no more (or less) than another, pre-specified limit price. As with all limit orders, a stop-limit order doesn't get filled if the security's price never reaches the specified limit price.

26. Stop Loss(S/L) , Take profit(T/P) • We can choose these parameters while trading in the market. • S/L: level of price lower than current price which you are willing to sell in order not to lose more. • T/P: level of price higher than current price which you are willing to sell in order not to lose more. Because you found that the price will not rise any more from that level. • The difference between S/L and T/P values should be more than spread.

27. How to Short-Sell in FOREX • When you believe that a exchange rate is falling, you can sell it although you already don’t have it. But later, in the lower price you will buy and fill the position. That’s how you can earn money!!! • How to set a short sell: Start with opening a sell position: Set S/L at a price, higher than Bid. And T/P at a price lower than Bid price.

28. Follow the details of your trades at terminal 1 2 3

29. Balance • Equity = Balance + (Current) Profit • Margin: amount of money required to open a trade. • Free margin= equity - margin • Margin available: how much money you have in order to trade.