Basics · Guide 5 of 5

Your first trade on MT5

Opening a position, lot size, and risk management — everything you need before your first live trade.

What is MT5, exactly?

MetaTrader 5 (MT5) is the world's most widely used trading platform — you can open trades, watch charts, and manage your account from it, on desktop, mobile, or web.

Most brokers provide it ready to use, and you can download it free from your broker's website or your device's app store.

Before anything else, how do I open a demo account?

A demo account gives you virtual funds (not real money) to practice in the exact same environment as the live market. Generally:

  1. Open the MT5 app/platform
  2. Select "Open an Account"
  3. Choose your broker's name, then "Demo Account"
  4. Set a virtual balance and currency
💡 We recommend practicing on a demo for at least two weeks before risking real money, even if you have experience in other markets.
What does the main screen actually show?
  • Market Watch: a list of all available instruments (XAUUSD, currencies, indices) with live prices
  • Chart: the price chart — you can change the timeframe (minute, hour, day...)
  • Terminal: at the bottom, showing your open trades, balance, and pending orders
How do I open my first trade (Buy/Sell)?
  1. Open a "New Order" window for the instrument you want (e.g. XAUUSD)
  2. Set your lot size (explained next)
  3. Always set a Stop Loss and Take Profit — not optional
  4. Click Buy if you expect the price to rise, or Sell if you expect it to fall
What is lot size, and how do I calculate it?

A lot is the unit that measures your position size. For gold, 1 standard lot = 100 ounces typically (confirm with your specific broker's instrument specs).

Lot size determines how many dollars you gain or lose per price point moved — the bigger the lot, the bigger the financial impact of each point, up or down.

💡 Simple beginner rule: don't risk more than 1–2% of your capital on a single trade. If your capital is small, use smaller (micro/mini) lots instead of a standard lot.
Why are Stop Loss and Take Profit so important?
  • Stop Loss: a price you set in advance — if the price reaches it, the trade closes automatically, protecting you from a bigger loss than you planned or can afford.
  • Take Profit: a price you set in advance to automatically close the trade at a target profit — protecting you from greed keeping you in a trade until the market reverses on you.

Opening a trade without either of these is one of the fastest ways beginners lose money.

One last tip before my first live trade?

Start with an amount you're comfortable losing (without it affecting your daily life), always use a Stop Loss, and avoid opening many trades at once while you're still learning. Trading is a long journey, not a sprint.

Next
What is XAUUSD? →
Revisit the basics any time
 See the broker guide →