Difference between MT4 Live Trading and Normal trading at broker like TradeRush,etc.

Hello.
Sorry if the question is too stupid.

I have recently watched a video course on Forex trading. The instructor used MT4 Live trading. He introduced some strategies that looked good when live trading on MT4. What he did was draw a 'Stop Loss' line and 'Profit' line and as current value crossed or touched the profit line, it was a win. He did not talk about expiry time at all.

I am a beginner and can't understand how to apply them when trading on a platform like Traderush,etc. The strategy worked everytime he traded, but am unable to choose an expiry time. Also he talked about 'Number of Pips increased or decreased.'

When trading on a platform like Traderush, etc all I did was 'CAll' or 'Put' ,set up an expiry time and if the price reaches my target it was a profit.

But trading on MT4, he talked about pips all the time and there was no choosing expiry time or how much money to trade with.

I am so confused. Can anyone kindly explain the difference between MT4 live trading and Normal trading.

Thank you.

Comments

  • lotzofbotzlotzofbotz Posts: 1,552 ✭✭✭✭
    edited November 2014
    MT4 is a charting program what you seem to be confused with is the idea of trading spot vs an option. An option is a contract based on time for example you place a PUT at 6am and the underlying which is the instrument you trade ie forex pair like the EUR/USD @ 1.25217 <-- that is your STRIKE price for the option if it was a spot trade that would be your fill price on the sell. Now the expiry time is for 10 mins so @ 6:10 the price of the EUR/USD is 1.25187 and you win the trade. The EUR/USD is the underlying the option on that is for 10 minutes the entry price on the put is the strike and the end price is the expiry @ 10 after. If it was a spot trade you do not have any time factors to worry about as you would then not have a contract/option but you would own the underlying which is the EUR/USD so you own it you can BUY/SELL it right and you determine your start and end time or depending on margin the market may for you... An Option is the right between to two times start/end to trade the underlying for that given period of time, once the contract expires in the money or out the contract is settled and the trade is over. Most forex traders never learn to trade with TIME a big advantage as a options trader is the ability to use time to your advantage because you have two axes on every chart the "X = TIME SCALE" and the "Y = PRICE SCALE"
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  • MahendharMahendhar Posts: 2
    Thank you lotzofbotz for answering.

    Can we use the same strategies for both?

  • lotzofbotzlotzofbotz Posts: 1,552 ✭✭✭✭
    First maybe it might be a good idea to post the video of what you are referring to in the first place? If its a commercial product don't post it here please, in that case just refer back to the product owners. If it is not and you quickly/effectively explain/share the video of the method I can then give you a more educated opinion if its worth the effort to attempt such...
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