Why "close" an order?

Hi all,

I've learned about forex trading 2 days ago, and have been reading quite a lot about it, and about using metatrader/mql4.

It says everywhere that a market order is executed immediately after being issued. So my big question is : why does one need to close an order? Why close it? Why is it open?
If I decide to sell, and if this market order is executed immediately, then why do I need to close it?

I'm really sorry, but nowhere could I find an answer to this question and it's starting to drive me nuts.

Thanks in advance to those who'll take the time to answer and explain.
Dylan

I finally found some vague explanation... But not sure I understood it well.

If I decide to buy 1 lot ('open a position') and then a bit later buy one more ('open a position'), and then later decide to sell 2 lots.. I closed those two positions? Is "closing an order" something like this?

(Just in case the above is more or less right.. In metatrader, do you need to use the function OrderClose, or can you just sell using an OrderSend? Is it the same, or do you really need to Close a particular position with the OrderClose function??)
I see some of you read my question already. Nobody who can answer?

Its the same.

Since your new to trading, there is no way I would recommend you using 1.00 positions. I would trade .10 (micro) or .01 (nano) until constantly profitable. If you cant make $100 with a $100 account then you can't make $100k with a $100k account.

Standard = $100,000 a $10 a pip
mini = $10,000 a lot $1 a pip
micro = $1,000 a lot and $.10 a pip
nano = $100 a lot and $.01 a pip

The 2 in red is the only ones I would trade until you know the markets well.

good luck

Thank you for you kind and detailed reply :)

I'm almost done programming my first little Expert Advisor, so I'll soon see whether or not my logique (and thus, my understanding) is more or less allright.
I do use the minimum allowed lot size for every market order :)

(now that I finally know what a lot and pip mean :)

The mini, micro and nano fx moves in 1/10th pips. The standard moves in full pips. I would recommend finding a broker that automates trading and deals with the 1/10th pips. They are better for the trader since if you stay in biz long enough they will save you lots....Only problem is only 2 of the 9 banks ( aka whales) use 1/10th pips. This is a fairly new invention on the FX. And is the only reason I am trading it, as the spread use to be too large for the style I am comfortable with......


That EUR/USD is moving huh....caught +36 pips. From the break of the 4 hour chart last bar low...Which is what they call a pin ball bar in fx land.

http://www.alpari.co.uk/en/trading_accounts/index.html

Seems the platform I'm using is allright for the beginner I am :)
It does support automated trading too (Metatrader 4/MQL) :)

1/100th pips is even better than 1/10th pips for a beginner, then.

I am curious : how does the spread relate to the minimum lot size (pips)? I'll try to find an answer myself later, eventually, if nobody answers, but I would appreciate an early explanation :)


+36pips is that much? As a newbie, I'd say that it is much, but I have no idea what could be considered "not much".

"pin ball" :p