How to trade US30 on MT4: A guide to start trading US30 on MT4
BY Chris Andreou|January 4, 2021
Follow along with this step-by-step guide and learn how to trade US30 on MT4 with TIOmarkets.
This includes signing up for an account, downloading the MT4 trading platform and placing your first US30 trade.
There are also some important things to be aware of before you start trading, Such as the contract’s specification and the costs involved. It is important to check this before you start trading, because it varies between brokers.
Each broker has different requirements but the advantage to trading US30 on MT4 with TIOmarkets is that you can start from $50. The minimum lot size is 0.01, so you can trade the index from just 10 cents per tick.
Keep reading to learn more and why you should trade US30 on MT4 with TIOmarkets.
So, let’s get started.
How to trade US30 on MT4
If you haven’t already got an account, follow these simple steps to set up and download the MT4 trading platform.
1. Register your account
Register your account with TIOmarkets, it only takes a few minutes and this will take you to your secure client portal.
2. Open a demo or live account
Create your demo or live account and choose the MT4 trading platform when setting it up. The log in credentials will be sent to you by email.
3. Download the MT4 trading platform
Download the MT4 trading platform to your computer or mobile phone.
4. Deposit funds
Go to deposit, select your deposit method and enter your preferred amount. You can start trading with TIOmarkets from $50.
5. Transfer funds to MT4
Once you have made a successful deposit, go to manage funds and transfer the funds from your TIOmarkets wallet to your MT4 account.
6. Log in to MT4
Log in to the MT4 trading platform and you should notice your balance reflects your deposit.
Now you can start trading US30 on MT4
What is the US30?
The Dow Jones Industrial Average (DJIA) is a price-weighted index that measures the stock prices of 30 large, publicly owned companies based in the US. The DJIA was invented by Charles Dow and Edward Jones in 1896. Since its inception, it has become the most widely recognized indicator of U.S. stock market performance.
Companies in the index are from various sectors of the economy including, transportation, communication, financial services, technology and health care.
The DJIA is commonly known or referred to as the “US30” by many traders and online brokers because it is a US based index comprising of 30 companies. The US30 is a CFD (contract for difference) that tracks the price of the DJIA.
To trade US30 on MT4 with TIOmarkets, look for symbol “DJ”.
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 third party software licensed to TIOmarkets and made available to traders to trade Forex, stocks, indices and commodities markets. Now that you know what the US30 is and what MT4 is, keep reading to learn how to trade US30 on MT4 with TIOmarkets.
How to find US30 on MT4 to start trading
If you want to trade US30 on MT4 with TIOmarkets, look for the symbol “DJ” 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 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 “DJ”, as stated above.
How to place your first US30 trade on MT4
What you can do now is, open a price chart to analyse the performance of the US30 (DJ) or open the new order window to execute your trade. To do that, right-click on the DJ symbol and either select chart window or new order from the menu that appears.
A new order window will appear and you are now ready to trade US30 on MT4.
By clicking buy by market, you can potentially benefit from rising prices in the US30. If you want to potentially benefit from falling prices in the US30, click sell by market.
Before doing so, you should first decide whether the US30 is likely to rise or fall and what your risk tolerance is. Further down the page, I will explain how to trade US30 on MT4 with considerations to risk management.
With that being said, MT4 also allows you to execute trades using different order types. This provides more flexibility in how to trade US30 on MT4 platform, depending on your tactics and strategy.
Trade US30 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 which one to use and when.
Buy limit – Use this pending order to buy at a price below the current market price.
Sell limit – A sell limit is a pending order to sell at a price above the current market price.
Buy stop – The buy stop pending order is an order to buy at a price above the current market price.
Sell stop – This is a pending order that rests below the current market price to sell as the price falls.
Check this infographic to get a better idea about the different pending order types on MT4.
How much money do you need to trade US30?
You can get started with TIOmarkets from just $50, but you need less than that to trade US30 on MT4. This is because you have the ability to trade using leverage and margin.
It would be a good idea to check the contract specification before you start trading any instrument on any broker’s platform. You can do that from within the MT4 trading platform. Just right-click on the symbol in the market watch window and select specification from the pop-up menu.
Here it is.
From top to bottom, the contract size of 10 means that 1 lot is the equivalent of 10 DJ contracts. To buy or sell 10 contracts of the DJ, select 1.0 in the volume field in the order window.
The margin percent shows how much you need as free margin (balance) in your account to open trades. So to open 10 contracts of DJ, you would need (10 x the current market price x 1%) about $3,650 at the time of writing.
When DJ 10 contracts are traded, each index point in the price is going to be worth $10. So if the index moves up by 50 points from 36500 to 36550, the equivalent profit or loss will be $500.
You can trade fewer contracts instead and the minimum volume is 0.01 lots, and about $36.50 as margin. This means you can buy or sell from as little as 1/10th of a DJ contract for better risk management.
Trading fractions of a contract allows for better risk management. An equivalent 50 point move trading 0.01 lots would be an equivalent profit or loss of only $5.
It might be a good idea to practice opening deals in a simulated environment to see how it all works. Create a demo account to learn how to trade US30 on MT4 without risk.
Why trade US30 on MT4 with TIOmarkets?
TIOmarkets is a fast growing 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 US30 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 $0 commission. Furthermore, the spreads are very tight and the executions speeds are practically instant.
You don’t need much to trade US30 on MT4 or MT5, because you can trade in fractions of a full US30 contract. This makes it even more affordable to get involved. You can start small and increase your lot size as your experience grows.
Start learning how to trade US30 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.
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