Trade options on mt4

› education › options-made-easy
Table of contents

IG International Limited is licensed to conduct investment business and digital asset business by the Bermuda Monetary Authority. The information on this site is not directed at residents of the United States and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. Careers IG Group. IG International Limited is licensed to conduct investment business and digital asset business by the Bermuda Monetary Authority and is registered in Bermuda under No.

Inbox Community Academy Help.

Options Trading Platforms - Fidelity

Log in Create live account. Related search: Market Data. Market Data Type of market. What is MetaTrader 4 and how do you use it? What is MT4? How do you use MT4? Below is a step-by-step guide on how to access and use MT4 with IG. Instant execution. Enable maximum deviation from the quoted price — trades can sometimes be rejected if prices move suddenly as you place them.

This will place your trade. Pending order. Customise MT4 charts MT4 offers a range of tools you can use to customise charts. Add indicators You can add indicators such as RSI, stochastic oscillator and Bollinger bands to charts. You can change the date range by right clicking within the window and selecting one of the following options: All history Last three months Last month Custom period if you select this option, you can choose a date range in a new window.

Right click within the window then select one of the following options: Save as report Save as detailed report. Discover more about MT4 add-ons and indicators. These are statistical variables that help evaluate the sensitivity of the option price to changes in various parameters, which include strike prices, volatility, current price of the underlying asset, expiration date, etc.

The Greeks will help you evaluate the risk of an adverse option price change based on the option parameters.

MT4 to IQ OPTION

Charts visualizing changes in Greeks depending on the option strike price are shown at the bottom. Use buttons on the toolbar or context menu to switch between the charts. Different profit and loss calculation methods apply to each strategy combination of options. However, they are calculated as the difference between the strikes or the strike and the price of the underlying asset and the premiums paid.

For example, under the Bear Put Spread strategy a put option with a lower strike is sold and a put option with a higher strike is purchased. The strategy is used when the trader expects the price of the underlying asset to go down.


  • MetaTrader 4: What is it – and how can it benefit traders?.
  • Where can I trade options on MT5? - Trading Platform - General - MQL5 programming forum?
  • fmb forex;
  • Account Options.
  • Options Board - Trading Operations - MetaTrader 5 Help;

If the price change has been predicted correctly, and the trader earns profit, the profit is calculated as follows:. Since the price of the underlying asset has decreased, when exercising the put option we sell the underlying asset at a more favorable price — strike is higher than the current price. When executing obligations on the sold put option, we redeem the underlying asset at a more favorable price — strike is below the current price.

Thus, our profit is the difference between the strike prices of the purchased and sold option. Then, the formula includes premium paid for options contracts. The price of a long option is deducted, as it is paid by the buyer. The price of a short option is added, as it is paid to the seller.

If the price in this example is predicted incorrectly, loss will be equal to difference in the premium received and paid. Strike prices are not taken into account, because options are not exercised: one party will not buy the asset at a price higher than market, and the other party will not sell it at a price below the market price.


  • 30 days to options trading mt4 forex market hours.
  • Trading FX options!
  • What is FX options trading?.
  • mtf forex freedom bar.rar;
  • Best Forex Brokers for Options (Turbos).

To draw a chart, the platform calculates the theoretical price of each option from the strategy for a certain price of the underlying asset. To analyze your own options trading strategy, add necessary positions to the list. Click "Add", select the desired symbol, and then click Buy or Sell. Any strategy can be saved for future use. Click on the toolbar and specify the name of the strategy:. Absolute strike values are not stored to preserve universality. Shift from the central strike is saved instead. To load a previously saved strategy, click on the toolbar and select it from the Custom section.

No real positions are opened during strategy analysis. All calculations are based on virtual positions. The Options Board includes a variety of popular strategies, which can be tested with a selected financial instrument. To apply a strategy, click on the toolbar:. A list will be shown containing positions, which could be opened according to this strategy, enabling you to analyze statistical metrics. Built-in strategies are divided into several basic types, depending on market conditions which the strategies are intended to be used in: bullish or bearish market, sideways movement, regardless of trend.

The strategies are further divided into categories depending on the trader's expectations of the market and the ability to limit losses:. All built-in strategies assume the purchase and sale of options with the same expiration date. When a moderate increase in the underlying asset price is expected.

It is expected under this strategy, that the final price will be between the option strikes. Both options will not be exercised in this case, and the trader may profit from the difference in premium values. When the underlying asset price grows, profit is not limited due to a more favorable purchase on the call option. If the price falls, the loss is not limited due to the obligation to sell the asset at a lower price on the put option. Buy a call option with a lower strike and sell a call option with a higher strike. If the price of the underlying asset grows, the trader receives the difference between strike prices, because it is the opportunity to buy the asset at a more favorable price than the trader is obliged to sell.

The premium difference is deducted from this amount. When the asset price falls, options are not exercised, and the trader loses only the difference in premiums. Buy a put option with a lower strike and sell a put option with a higher strike. If the price of the underlying asset grows, the trader receives the difference between strike prices, because it is the opportunity to sell the asset at a more favorable price than the trader is obliged to buy.

When a change in the underlying asset price and increase in volatility is expected. If the price falls below the strike of the sold option, the loss is limited to the premium difference, since non of the two options will be exercised parties will not buy the asset at a price above the market. The largest loss is found in the range between the strikes of the long and short options. In this case, the sold option is in-the-money, in contrast to purchased ones. If the asset price then grows, the portfolio reaches the breakeven level.

When a growth in the underlying asset price and increase in volatility is expected.

MT4: How to Open a Trade

Profit: Underlying asset price - Option strike - Option premium. The profit is not limited if the underlying asset price grows. If the price falls, the loss is limited to the option premium paid. When a growth in the underlying asset price and volatility increase is expected. The profit is limited to the option premium if the underlying asset price grows. If the price falls, the loss is not limited. Buy two call options and one put option with the same strikes. When a change in the underlying asset price is expected, with a higher probability of growth.

Profit in case of price decrease: Underlying asset price - Put option strike - Premium for options. The profit arises both when the underlying asset price grows and falls, but is higher in case of growth. The loss is limited to the premium paid for the options. Buy a call option and sell a put option with equal strikes. When an increase in the underlying asset price is expected.

Loss is not limited if the price falls. Buy a put option with a lower strike and sell a call option with a higher strike.

Trading Call Options on MT4

When a moderate fall in the underlying asset price is expected. When the underlying asset price falls, profit is not limited due to a more favorable selling on the put option. If the price grows, the loss is not limited due to the obligation to buy the asset at a higher price on the call option. If the price of the underlying asset falls, the trader receives the difference between strike prices, because it is the opportunity to sell the asset at a more favorable price than the trader is obliged to buy.

When the asset price grows, options are not exercised, and the trader loses only the difference in premiums. If the price of the underlying asset falls, the trader receives the difference between strike prices, because the trader has the obligation to sell the asset at a lower price than he is obliged to buy. Buy two put options with a lower strike and sell one put option with a higher strike.

If the price rises above the strike of the bought option, the loss is limited to the premium difference, since non of the two options will be exercised parties will not sell the asset at a price below the market. In this case, the purchased options are in-the-money, in contrast to sold ones.

If the asset price then falls, the portfolio reaches the breakeven level. When a fall in the underlying asset price and increase in volatility is expected. Profit: Option strike - Underlying asset price - Option premium. The profit is not limited if the underlying asset price falls.

Clients login

When a fall in the underlying asset price and volatility decrease is expected. The profit is limited to the option premium if the underlying asset price falls. If the price grows, the loss is not limited. Buy one call option and two put options with equal strikes.