This is the lesson where theory becomes action. You are going to place your first trade — on a demo account, with no real money at risk. The mechanics you learn here apply identically to every trade you will ever place, on any pair, on any platform. Get these right on demo and you will never make a mechanical error on a live account.
The New Order Window
To open a new order in MT4, press F9 or go to Tools → New Order, or right-click on the chart and select Trading → New Order. A dialogue box appears with the full order entry interface.
The order window shows the current symbol (you can change this), the current volume (lot size), type of order, stop loss, take profit, and any comment you want to attach to the trade for journaling purposes.
Order Types
MT4 offers several order types. For your first trade, you will use a market order — the simplest type.
Market Execution Buy or sell immediately at the current market price. Fills instantly at or near the displayed price. Buy Limit Set a price below the current price to buy — the order only executes if price falls to your level. Sell Limit Set a price above the current price to sell — the order only executes if price rises to your level. Buy Stop Set a price above the current price to buy — used to buy breakouts. Sell Stop Set a price below the current price to sell — used to sell breakdowns.
Setting Lot Size
The volume field in the order window is your lot size. This is the single most important number in the entire order — it determines how much money you make or lose per pip. Never enter a trade without knowing exactly what your lot size means in dollar terms for your stop loss distance.
For your first demo trade, use 0.01 (one micro lot). On EUR/USD with a standard account, this gives you approximately $0.10 profit or loss per pip. It is the smallest position size available at most brokers and appropriate for a first trade where you are learning the mechanics rather than testing a strategy.
Lot size is the most common source of mechanical errors. Always check it twice before confirming any order. A 1.0 lot trade on EUR/USD risks $10 per pip. A 0.01 lot trade risks $0.10 per pip. One decimal point is a 100x difference in risk.
Stop Loss and Take Profit
A stop loss is the price level at which your trade will automatically close if the market moves against you. Setting a stop loss is not optional — it is the mechanism that limits your maximum loss to a predetermined amount. Every trade should have a stop loss set before the order is confirmed.
A take profit is the price level at which your trade automatically closes when the market moves in your favour. You do not have to set a take profit — you can close trades manually — but having one removes the need to monitor the trade constantly and removes the temptation to hold past your target.
Symbol: EURUSD Type: Market Execution (Buy) Volume: 0.01 lots Stop Loss: 50 pips below entry Take Profit: 50 pips above entry Comment: "First demo trade" If entry = 1.0850: Stop Loss = 1.0800 Take Profit = 1.0900 Risk per pip at 0.01 lots = $0.10 Total risk = 50 pips × $0.10 = $5.00 Total target = 50 pips × $0.10 = $5.00
Closing a Trade
To close an open trade manually in MT4, go to the Terminal panel at the bottom, find your trade in the Trade tab, and click the × at the far right of the row. A confirmation dialogue appears — confirm to close at the current market price.
Alternatively, right-click the trade in the Terminal panel and select Close Order. You can also partially close a trade by reducing the volume in the close dialogue — for example, closing 50% of a position to lock in partial profit while letting the remainder run.