An order tells MetaTrader 5 (MT5) how and when you want to enter a trade. A market order requests execution without waiting for a chosen price. A pending order remains inactive until the market reaches specified conditions. The right choice depends on whether you value immediate participation, price control or confirmation that the market has moved in a particular direction.
No order type removes trading risk. Market prices can change quickly, spreads can widen and available liquidity can vary. These conditions may cause slippage, partial execution or no execution, depending on the order and execution rules.
Market orders and pending orders
Market orders
A market order instructs MT5 to buy or sell at the best available price. It is commonly used when entering promptly matters more than obtaining an exact entry price. The displayed quote is not always the final execution price because the market may move while the request is being processed.
A buy market order normally executes near the available ask price. A sell market order normally executes near the available bid price. The difference between those quotes is the spread. Slippage is the difference between the expected price and the actual execution price.
Pending orders
A pending order specifies a condition that must be met before an entry can occur. MT5 supports limit orders, stop orders and stop limit orders. A pending order can include an expiry setting, a position size, a stop loss and a take profit, although the available settings can depend on the instrument and account configuration.
Buy limit and sell limit orders
A limit order requests execution at a chosen price or a more favorable one. Traders use it when they expect price to reach a level and then reverse or retrace.
- Buy limit: Placed below the current ask price. It is used to seek a lower purchase price after a decline.
- Sell limit: Placed above the current bid price. It is used to seek a higher selling price after a rise.
A limit order offers price control, but execution is not certain. Price may never reach the limit. It may also touch the displayed level without filling the entire order if insufficient liquidity is available under the applicable execution model.
Buy stop and sell stop orders
A stop order becomes eligible for market execution after price reaches its trigger. Traders often use stop orders when they want evidence that price is moving beyond a selected level before entering.
- Buy stop: Placed above the current ask price. It may be used to enter after upward movement reaches the trigger.
- Sell stop: Placed below the current bid price. It may be used to enter after downward movement reaches the trigger.
Once triggered, a stop order behaves like a market order. It therefore prioritizes entry over exact price. During a fast move or a gap, the execution price may be less favorable than the trigger. The trigger is not a promise of execution at that exact value.
How stop limit orders work
A stop limit order combines a stop trigger with a limit order. When the stop price is reached, MT5 places the related limit order instead of sending a market order. This gives more control over the acceptable entry price, but creates a greater chance that no trade will occur.
- Buy stop limit: The stop trigger is above the current ask. When triggered, a buy limit is placed at the specified stop limit price.
- Sell stop limit: The stop trigger is below the current bid. When triggered, a sell limit is placed at the specified stop limit price.
This structure can suit a trader who wants an initial breakout followed by a retracement. If price continues moving without returning to the limit price, the order remains unfilled. Traders should check MT5 order tickets carefully because the stop trigger and stop limit price are separate fields.
Worked hypothetical example
Imagine a hypothetical instrument with an ask price of 100 and a trader who wants confirmation of upward movement before buying. The trader places a buy stop at 110. If the ask reaches 110, the order is triggered and seeks market execution. The actual fill might differ from 110 because liquidity and price movement affect execution.
Now imagine the trader instead sets a buy stop limit with a stop trigger of 110 and a limit price of 108. Reaching 110 activates a buy limit at 108. If price returns to 108 or lower and the order can be matched, it may execute. If price rises from 110 without returning, there is no entry.
Suppose the account contains $1,000 and the trader limits planned risk to 1 percent. The risk budget is $1,000 multiplied by 0.01, which equals $10. If a filled entry at 108 has a protective stop at 103, the planned risk is $5 per unit. Dividing $10 by $5 gives a maximum size of 2 units, before allowing for spread, slippage, commissions or currency conversion. This is hypothetical arithmetic, not a recommendation.
Common order mistakes
- Confusing direction with order type, such as placing a buy limit above the market instead of below it.
- Assuming a stop order guarantees the trigger price.
- Assuming a limit order guarantees execution because the chart touched the level.
- Ignoring the bid and ask distinction when setting triggers.
- Placing orders too close to the market when minimum distance rules apply.
- Entering the wrong volume or forgetting that contract sizes vary.
- Leaving pending orders active after the original trade idea is no longer valid.
- Using a stop limit order without accepting that the market may move away unfilled.
Practical order check
- Decide whether immediate entry, price control or movement confirmation matters most.
- Confirm that the order is on the correct side of the current bid or ask.
- Check volume, trigger price, limit price, stop loss, take profit and expiry.
- Calculate the planned monetary risk before submitting the order.
- After submission, verify the order in MT5 and cancel it if the trading reason expires.
Educational content only, not investment advice. Leveraged trading can lose more than you expect.