Metatrader 4: Market Watch, Quotes And Prices

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All Forex/CFD quotes have two prices, the BID and the ASK price. The Bid is the price that you (as the trader) open a sell position. The Ask is the price that you open a buy position.

The difference between the bid and the ask price is known as the spread.

 

To see the latest prices, use “Market Watch” window (Pic.17). The “Market Watch” window gives you the ability to quickly view the latest Ask and Bid price of the symbols you can trade.

The “Market Watch” window can be activated by pressing the Ctrl+M key combination, or by using the View->Market Watch menu sequence or by clicking pic16-button the button from the “Standard” toolbar (Pic. 16):

pic16

Picture: Standard” toolbar

MT4-Market-watch

Picture – Market Watch

The “Market Watch” window gives you the ability to quickly view the latest Ask and Bid price of the symbols you can trade.

Right click the mouse button on the “Market Watch” window to produce the context menu:

New Order – enables the window to open/close a position or to place a new pending order;

Chart Window – enables the chart of a currency pair or CFD;

Tick Chart – shows the tick chart for the selected instrument;

Hide – deletes the specified symbol from the list in the “Market Watch” window;

Hide All – deletes all symbols from the list in the “Market Watch” window which are not used (if you have open positions or charts, its symbols will not be deleted);

Show All – displays all available symbols in the “Market Watch” window;

Symbols – enables the window where you can hide/show the selected instruments;

Sets – saves/adjusts/deletes the custom settings for the “Market Watch” window;

High/Low – shows/hides columns with the highest and lowest prices for each instrument;

Time – displays a column with the arrival time of the latest quote for each instrument;

Grid – hides/unhide grid lines in the “Market Watch” window;

Popup Prices – opens the popup window which contains real time quotes for your selected instruments.

What is Market trends ?

A market trend is a tendency of a financial market to move in a particular direction over time. Trend is the most important concept in technical analysis. A trend designates the general direction of a market movement. It is important to identify trends so that you can trade with them rather than against them.

Types of Trend

A trend may be:

  • Upward – this is called a Rally ; the market trends the way up
  • Downward – this is called a Downtrend ; the market trends the way down
  • Sideways / Horizontal – this is called “flat market” or “trendless” ; the market trends nowhere

Trend Lengths

A trend of any direction can be classified according to its length

  • Short-term Trend ; it usually lasts no more than three weeks
  • Intermediate Trend ; it usually lasts somewhere between 3 weeks to several months
  • Long-Term or Major Trend ; it is considered to last for a year or more. It is composed of several intermediate trends, which often move against the direction of the Major Trend

How Does the Forex Market Work?

Until the 1970’s, and for the previous 100 years, the value of most currencies was tied in some way to the value of gold. In 1944 this “gold standard” was replaced by the Bretton Woods Agreement which valued the United States dollar against gold, and all other currencies against the US dollar. In 1975 that agreement fell apart and a system of floating exchange rates was widely adopted, leading to fluctuations in currency values in an open market-and laying the foundation for foreign exchange speculation.

Today, trading in foreign currencies by speculators usually takes place through a forex broker or dealer, who provides the trading platform to transact forex trades. Such trades occur in currency pairs, such as USD/JPY (United States Dollars/Japanese Yen). Note that two currencies are always involved in a forex trade, with one being purchased while the other is being sold.

The forex trader will generally hold the purchased currency (called a position) for a period of time, intending to profit when the prices of the two currencies change favorably. The transaction is completed, or the position is closed, when the opposite currency is bought and the other sold. Profit is calculated by the difference in the buying and selling price.

Different brokers offer different services, and traders need to be careful their broker is serving their best interests. Each broker provides demonstration or practice accounts, where a new trader can play with virtual money until they feel comfortable opening a real account. Analysis can be completed and orders are placed online, at the trader’s request.