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

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

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

4. Open a Demo Account 4

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7. Get username and password for Demo 7

8. Login to the market 8

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10. How to see charts of a pair 10

11. Different types of charts 11 Bar chartCandle stick chartLine chart

12. Time frames 12

13. Indicator tools 13

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

15. Open a pending order position New Order 15

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

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. 17

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. 18

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 19

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. 20

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. 21

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 22

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. 23

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.stop price It is typically used to limit a loss (or to protect an existing profit) on a short sale.short sale 24

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. 25

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. 26

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. 27

28. Follow the details of your trades at terminal 28 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. 29