3.2.1 Common terms in Mt4
1. Long Position（Buy）
Traders will go long when they expect that the price of the asset will rise.
2. Short Position（Sell）
Traders will go short when they expect that the price.
3. Take Profit (TP)
Close Position when the trading order makes Profits Traders can setting automated or manually Take Profit in MT4.
4. Lot Size
Trading Volume
Opening Position of 1 Lot of EUR/USD means trading 100,000 EUR value of CFD
5. Stop Loss (SL)
Close Position when the trading order makes Losses
Traders can setting automated or manually Stop Loss in MT4
6. Overnight Interest (Swap Fee):
Overnight Interest generated when you keep a position open overnight.
This charges arises due to the difference in interest rates between different currencies.
For example, when you deposit money in a bank, you earn interest, and when you borrow from a bank, you have to pay interest. When trading currency pairs, it typically involves two currencies. For instance, buying EURUSD actually means buying (equivalent to depositing) EUR and selling (equivalent to borrowing) USD. This creates an interest differential, also known as overnight interest.
international banking conventions:
the settlement of overnight interest usually takes place on the next day. (T+2)
E.G. Holding a position overnight from Monday to Tuesday, the settlement would occur between Wednesday and Thursday,
7. Triple Swap：
Swap Fees occur in Friday, Saturday and Sunday. (Banks are closed)
Interest settlement of weekends is postponed until Monday,
(Usually Triple Swap will be settled on Wednesday)
When do Broker Charge Swap Fee?
New York time : 5:00 PM
Beijing (daylight saving time): 5:00 AM
Beijing (winter time): 6:00 AM
7. Candlestick Chart (K-Line Chart):
A graphical representation of the price movement of a product.
- It consists of multiple candlesticks,
- Each candlestick represent market’s opening, high, low, and the closing price. (OHLC)
- Each candlestick represents a specific time period, which can be 1 minute, 1 hour, 1 day, etc.,
Plotting a candlestick every hour forms a 1-hour candlestick chart with OHLC
You also can plot weekly or monthly candlestick charts.