How To Trade Nasdaq on MT4 | A guide to start trading Nasdaq on MT4
BY Chris Andreou
|May 27, 2022Follow along with this step-by-step guide and learn how to trade Nasdaq on MT4 with TIOmarkets. This includes signing up for an account, downloading the MT4 trading platform and placing your first trade on the Nasdaq.
There are also some important things to be aware of before you start trading, such as the costs involved. So it is important to check the contract’s specification before you start trading. Because lot sizes and commissions vary between brokers and we will cover all of it in this article too.
The advantage to trading the Nasdaq on MT4 with TIOmarkets is that you can start from just $50. The lot size is also low, allowing you to trade the index from just $0.10 per tick.
Keep reading to learn how to trade Nasdaq on MT4 from start to finish and why you should start trading Nasdaq on MT4 with TIOmarkets.
Let’s get started.
How to trade Nasdaq on MT4
The first thing you need to do is create a trading account, follow these simple steps to register and download the MT4 trading platform.
Step 1. Register your account
It only takes a few minutes, once you have gone through the process, you will be in your secure client area. Register your account with TIOmarkets now.
Step 2. Create a demo or live account
Create your demo or live account and choose the MT4 trading platform when setting it up. You will receive the login credentials to your trading account by email. Keep these safe.
Step 3. Download the MT4 trading platform
From your secure client area, navigate to the download center and download the MT4 trading platform to your computer or smartphone.
Step 4. Fund your account
Now navigate to deposit or deposit funds, choose your deposit method and your desired amount. You can start trading with TIOmarkets from just $50 but you might want to start with a little more.
Step 5. Transfer your funds to the MT4 trading platform
You are nearly done! Once you have made a successful deposit, you now have to transfer the money from your TIOmarkets wallet to the MT4 trading platform. So go to manage funds and transfer the funds from your TIOmarkets wallet to your MT4 account.
Step 6. Log in to MT4
Log in to the MT4 trading platform and you should notice your balance reflects your deposit.
Now you are all set to start trading Nasdaq on MT4.
How to start trading Nasdaq on MT4
What is the Nasdaq?
Nasdaq is short for the National Association of Securities Dealers Automated Quotations, which is an American stock exchange. It was founded in 1971 and serves as an electronic platform for the fast and transparent trading of securities.
The Nasdaq is a major stock exchange in the United States with more than 3,000 different tradable securities. These include stocks in large companies (such as Apple, Microsoft, Tesla), small businesses and many types of bonds and electronically traded funds (ETF’s).
Its value is calculated by using a weighted price, which means that stocks with higher prices are given more weight than those with lower prices. The companies with the highest market capitalization (the sum of all of their shares outstanding multiplied by the price per share) have the most influence on how much the Nasdaq Composite Index rises or falls each day.
On TIOmarkets MT4 trading platform, the Nasdaq is available for trading as a CFD with symbol name NAS. CFDs are Contracts For Difference, where the value is derived from tracking the price of the underlying asset.
What is MT4?
MT4 is a trading platform, designed and developed by Metaquotes for Forex and futures trading. It enables traders to analyse and trade financial markets, back test trading strategies and develop trading robots. It is a third party software licensed to TIOmarkets and made available to traders to trade Forex, stocks, indices and commodities markets.
Now that you know what both the Nasdaq and MT4 are, keep reading to learn how to trade Nasdaq on MT4 with TIOmarkets.
How to find and start trading Nasdaq on MT4
If you want to trade Nasdaq on MT4 with TIOmarkets, find the NAS symbol in the market watch window. If it isn’t visible, you will need to add it.
To do that, right-click anywhere in the market watch window and select show all from the pop-up menu that appears.
You should now see all the symbols available for trading on the MT4 trading platform. Scroll down the list of symbols until you find “NAS”.
How to place your first Nasdaq trade on MT4
What you can do now, is open a price chart to analyze the historical performance of the Nasdaq or open the new order window to execute your trade. To do that, right-click on the “NAS” symbol and either select the chart window or new order options from the menu that appears. The former will allow you to view the chart before placing your trade.
Select new order and another window will appear so you can execute your trade on the Nasdaq.
By clicking buy by market, you can potentially benefit from rising prices in the Nasdaq. If you want to potentially benefit from falling prices, click sell by market.
Before doing so, you should first decide whether the Nasdaq is likely to rise or fall and what your risk tolerance is. Further down the page, I will explain how to trade Nasdaq on MT4 with considerations to risk management.
With that being said, MT4 also allows you to execute trades using different order types. Depending on your tactics and strategy, these order types provide more flexibility in how to trade Nasdaq on the MT4 platform.
Trade Nasdaq on MT4 with pending orders
To change the order type, select pending order from the drop-down menu from the order window.
You will be presented with four pending order options, two for buying scenarios and two more for selling scenarios. I will explain what each one means and when to use them.
Buy Limit
Use this pending order to buy at a price below the current market price. It is a resting order below the current market price that will trigger if the price falls to it.
Sell Limit
A sell limit is a pending order to sell at a price above the current market price. It is a resting order above the current market price that will trigger if the price rises to it.
Buy Stop
The buy stop pending order is an order to buy at a price above the current market price. It is a resting order above the current market price that will trigger as the price moves up.
Sell Stop
This is a pending order that rests below the current market price to sell as the price falls. It is a resting order below the current market price that will trigger as the price moves down.
Check out this infographic to get a better idea about the different pending order types on MT4.
How much money do you need to trade Nasdaq?
You can get started with TIOmarkets from just $50, but you need less than that to trade Nasdaq on MT4. This is because you have the ability to trade using leverage and margin.
Before you start trading any instrument on any broker’s platform, it would be a good idea to check the contract specification. The best place to do this is from within the MT4 trading platform. Just right-click on the NAS symbol in the market watch window and select specification from the pop-up menu that appears. Here it is.
From top to bottom, the contract size of 10 means that 1 lot is the equivalent of 10 NAS contracts. To buy or sell 10 contracts of the NAS, select 1.0 in the volume field in the order window.
The margin percent shows how much you need as free margin (available balance) in your account to open trades. So to open 10 contracts of NAS, you would need 10 times the current market price multiplied by 1%. Which is about $1,195 at the time of writing.
When 10 contracts of the NAS are traded, each index point in the price is going to be worth $10. So if the index moves up by 50 points from 11950 to 12000, the equivalent profit or loss will be $500.
You can trade fewer contracts instead and the minimum volume is 0.01 lots. This means you can buy or sell from as little as 1/10th of a DJ contract for better risk management. The margin requirement for such a small deal size would only be 1% of 10 NAS contracts, or about $12.00.
An equivalent 50 point move from the scenario above, but only trading 0.01 lots would mean a $5 profit or loss on the trade. Trading fractions of a contract allows for better risk management and makes trading the NAS much more affordable.
It might be a good idea to practice opening deals in a simulated environment to see how it all works. You can create a demo account to learn how to trade Nasdaq on MT4 without risk.
Why trade Nasdaq on MT4 with TIOmarkets?
TIOmarkets is a fast growing, award winning online broker with a reliable trading platform. Clients receive a superb trading experience, competitive trading conditions and hassle free withdrawals.
If you want to learn how to trade the nasdaq on MT4, you can practice on a demo account or go live from as little as $50. TIOmarkets has an account type to suit all budgets but the flagship VIP Black account has raw spreads and $0 commission.
You don’t need much to start trading Nasdaq on MT4, because you can trade in fractions of a full Nasdaq contract. This makes it even more affordable to get involved so you can start small and increase your lot size as your experience grows.
Start learning how to trade Nasdaq on MT4 or MT5 today click here to register your account.
Risk disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Never deposit more than you are prepared to lose. Professional client’s losses can exceed their deposit. Please see our risk warning policy and seek independent professional advice if you do not fully understand. This information is not directed or intended for distribution to or use by residents of certain countries/jurisdictions including, but not limited to, USA & OFAC. The Company holds the right to alter the aforementioned list of countries at its own discretion.
Experienced independent trader
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Trade responsibly: CFDs are complex instruments and come with a high risk of losing all your invested capital due to leverage.