Common Terms of MT4 (1) Buy: It means to purchase a currency with the expectation that its value will increase, in order to sell it at a higher price and make a profit. This strategy is known as a long position trade. For example, suppose you believe that the value of the US dollar will rise and you want to profit from it. You can achieve this by buying US dollars, holding onto them, and waiting for their value to increase. When the value of the US dollar rises, you can sell it at a higher price and make a profit. Sell: In the foreign exchange market, selling or "going short" means that an investor expects the value of a currency to decrease and wants to profit from the decline in value. This strategy is also known as a short position trade. Lot Size: Refers to the volume of a trade. One lot of forex is approximately equal to 100,000 units of the base currency. The specific quantity depends on which currency pair you are trading. Take Profit (TP): Refers to closing an order when it reaches a profitable level. Take profit can be set as a pending order or executed manually. Setting a pending take profit order means that when the target price is reached, the trading system automatically closes the trade to realize the target profit. This helps traders limit losses and secure profits. Manual take profit is when the order is closed manually when it generates a profit. Stop Loss (SL): Refers to closing an order when it incurs a loss. Stop loss can be set as a pending order or executed manually. Setting a pending stop loss order means that when the market price reaches the predetermined price, the trading system automatically closes the trade to limit losses. This helps protect the trader's capital from further losses.