Order types in MetaTrader 5: market, limit, stop, stop loss and take profit
What is the difference between a Buy Limit and a Buy Stop? Where should stops and targets go? Learn every MT5 order type with simple examples.
Good analysis only turns into profit when you place the right order at the right level. MetaTrader 5 offers several order types, and knowing the difference is essential.
Market execution
You buy or sell right now at the best available price. It is quick and simple, but during news the fill can be slightly worse than the price you saw (slippage).
Pending orders
Use these when you want price to reach a specific level before you enter:
| Order | Placed | The idea |
|---|---|---|
| Buy Limit | Below current price | Buy cheaper at support or demand |
| Sell Limit | Above current price | Sell higher at resistance or supply |
| Buy Stop | Above current price | Buy after a resistance breakout |
| Sell Stop | Below current price | Sell after a support breakdown |
An easy way to remember it: Limit expects price to turn back; Stop expects the move to continue after a break.
MT5 also has two combined orders, Buy Stop Limit and Sell Stop Limit: price must first hit the stop level, which then activates a limit order.
Stop loss
The level at which your trade closes automatically if price goes against you. Place it behind structure, below the previous low for a buy or above the previous high for a sell, not at an arbitrary "20 pips".
Take profit
The level at which the trade closes in profit. Sensible targets are usually the next resistance, a previous high or Fibonacci extension levels.
Trailing stop
Moves your stop along as price moves in your favour to lock in part of the profit. Note that in MT5 a trailing stop only works while the terminal is open.
Common mistakes
- Placing a Buy Limit instead of a Buy Stop and entering the wrong way
- Trading without a stop because "the market will come back"
- Moving the stop further away to avoid taking the loss
Test every order type on a demo account first. Our beginner course includes a video on orders.
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Trading financial markets involves risk. This article is educational and is not investment advice.
Forex and CFD trading carries a high level of risk due to leverage and you may lose more than your initial capital. Content on this site is educational and not investment advice.
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