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MT5 Order Types Explained: Market, Pending & Stop Orders Guide
BY TIO Staff
|April 7, 2026Understanding how to use different order types is one of the most important skills in trading. Whether you are a beginner or an experienced trader, knowing how to execute trades properly on MetaTrader can significantly improve your results.
In this guide, we will break down everything you need to know about MT5 order types, including how they work, when to use them, and how they help manage risk effectively.
What’s Included in This Article
In this article, you will learn:
- What order types are in trading
- How market, limit, and stop orders work
- The difference between deal vs order MT5
- How to place and manage pending orders
- Risk management strategies using different orders
- Common mistakes traders should avoid
Understanding Order Types in Trading
An order in trading is an instruction you give to your broker to buy or sell a financial instrument. On MetaTrader 5, orders are categorized into different types depending on how and when they are executed.
Understanding these order types allows traders to:
- Enter trades at the right price
- Control risk
- Automate trading decisions
- Avoid emotional trading
Market Orders in MT5
A market order is the simplest type of MT5 order. It executes immediately at the best available price.
When you place a market order on MetaTrader 5, the platform connects directly to your broker and fills the order instantly based on current market conditions.
This type of order is ideal when speed is more important than price precision.
Three Types of Orders
Market Orders: Speed Over Precision
Market orders prioritize execution speed. Traders use them when they want to enter or exit trades quickly, especially during fast-moving markets.
Limit Orders: Trading With Price Control
Limit orders allow traders to set a specific price at which they want to buy or sell. The trade will only execute if the market reaches that level.
This gives traders better price control but no guarantee that the order will be filled.
Stop Orders: Managing Breakouts and Risk
Stop orders trigger trades when the market reaches a certain level. They are commonly used for:
- Breakout trading
- Risk management
- Automated entries
Advanced Order Types Used by Active Traders
Experienced traders use advanced MT5 order types to refine their strategies and improve execution.
These include:
- Buy Stop Limit
- Sell Stop Limit
- Trailing Stop
- Partial close orders
These tools allow traders to automate decisions and reduce emotional trading.
Pros and Cons of Market Orders
Pros:
- Instant execution
- Simple to use
- Ideal for fast markets
Cons:
- Slippage risk
- No price control
- Higher spreads during volatility
When to Use Market Orders in Trading
Market orders are best used when:
- Entering during strong trends
- Closing trades quickly
- Trading high-liquidity markets
Why Order Types Matter in Trading
Order types are not just technical tools—they play a direct role in a trader’s overall performance and consistency. Every trade you place involves a decision not only about direction but also about how that trade is executed. Choosing the correct order type can be the difference between a well-managed trade and an unnecessary loss.
Using the right MT5 order type helps traders:
- Reduce lossesProper use of stop-loss and pending orders ensures that trades are controlled even when the market moves unexpectedly. Instead of reacting emotionally, traders rely on pre-set rules that limit downside risk.
- Improve entry timingOrder types such as limit and stop orders allow traders to enter trades at strategic price levels rather than chasing the market. This leads to better risk-reward ratios and more efficient entries.
- Manage volatilityDuring high-impact news events or fast-moving markets, price can change rapidly. Using the correct order type helps traders navigate volatility by either executing instantly (market orders) or waiting for confirmation (pending orders).
- Maintain disciplineOne of the biggest challenges in trading is emotional decision-making. Order types help enforce a structured trading plan by automating entries, exits, and risk controls.
Beyond these benefits, understanding the difference between deal vs order MT5 is also important. An order is your instruction to trade, while a deal is the actual execution. Misunderstanding this can lead to confusion, especially when trades do not execute as expected.
Many traders fail not because their strategy is wrong, but because they use the wrong order type at the wrong time. For example, using a market order in a highly volatile market can lead to slippage, while placing a limit order in a fast-moving trend may result in missed opportunities.
Ultimately, mastering order types allows traders to take control of execution, reduce mistakes, and trade with greater confidence and precision.
Pending Orders in MT5
Pending orders allow traders to set trades in advance. Instead of entering manually, the system executes trades automatically when price conditions are met.
This is especially useful for traders who cannot monitor the market constantly.
How to Place Pending Orders in MT5
To place a pending MT5 order:
- Open the order window
- Select “Pending Order”
- Choose order type (Buy Limit, Sell Limit, Buy Stop, Sell Stop)
- Set entry price
- Add stop-loss and take-profit
- Confirm the order
This process answers one of the most common questions: how to place buy stop limit order in MT5—which involves selecting the correct pending order type and setting both stop and limit levels.
Use Cases for Different Types of Pending Orders
- Buy Limit: Enter below current price
- Sell Limit: Enter above current price
- Buy Stop: Enter above resistance breakout
- Sell Stop: Enter below support breakdown
Stop Orders in MT5
Stop orders are essential for both entry and risk management.
They allow traders to:
- Enter trades during breakouts
- Protect capital
- Automate exits
How the Stop Orders Help in Risk Management
Stop-loss orders automatically close trades when the market moves against you. This prevents large losses and protects your account.
Trailing stops go a step further by locking in profits as the market moves in your favor.
Common Mistakes Traders Make with Stop Orders
- Placing stops too close
- Ignoring market volatility
- Moving stop-loss emotionally
- Not using stops at all
These mistakes often lead to unnecessary losses.
Best Practices for Using Order Types in MT5
To use order types effectively:
- Always define entry and exit before trading
- Match order type to market condition
- Avoid overusing market orders
- Use pending orders for planned trades
Discipline is key when using MT5 orders.
Tips for Beginner Traders in Setting Orders Correctly
Beginners should focus on simplicity and risk control.
Key tips include:
- Start with market and limit orders
- Always use stop-loss
- Avoid high leverage
- Practice on demo accounts
Learning proper order execution early can prevent costly mistakes.
Risk Management Strategies with Different Order Types
Order types play a major role in risk management.
Effective strategies include:
- Using stop-loss on every trade
- Setting realistic take-profit levels
- Limiting risk per trade (1–2%)
- Using trailing stops to secure profits
Combining these strategies helps protect your trading capital.
Detailed Explanation: Buy Stop Limit and Sell Stop Limit
What is a Buy Stop Limit?
A Buy Stop Limit is a hybrid order type. It combines a stop order and a limit order.
- First, price must reach the stop level
- Then, a limit order is placed
This gives traders more control over entry price during breakouts.
What is a Sell Stop Limit?
A Sell Stop Limit works the same way but for selling:
- Price hits the stop level
- A limit sell order is triggered
This helps traders avoid entering at unfavorable prices during fast market moves.
How to Modify and Close Orders
Managing trades is just as important as opening them.
How to Move Stop Loss and Take Profit (Modifying Orders)
To modify an order in MetaTrader 5:
- Right-click the trade
- Select “Modify Order”
- Adjust stop-loss or take-profit
- Confirm changes
This allows traders to adapt to changing market conditions.
How to Partially Close a Trade
Partial closing lets traders secure profits while keeping part of the position open.
Steps:
- Select the trade
- Choose “Close Order”
- Adjust volume
- Execute partial close
This is a powerful tool for managing risk and maximizing gains.
Common Errors When Placing Orders on MT5 (FAQs)
What is the difference between deal vs order MT5?An order is a request to trade, while a deal is the actual execution of that order.
Why is my order not executed?This may happen due to price not reaching the set level or insufficient margin.
Can I cancel a pending order?Yes, you can delete pending orders anytime before execution.
What is the best order type for beginners?Market and limit orders are the easiest to understand and use.
Conclusion
Mastering order types in MetaTrader 5 is essential for successful trading. Each order type serves a specific purpose, from entering trades to managing risk and protecting profits.
By understanding how MT5 orders work and applying them correctly, traders can improve execution, reduce emotional decisions, and achieve more consistent results.
Key Takeaways
- MT5 order types help control trade execution and risk
- Market orders execute instantly, while limit and stop orders offer more control
- Understanding deal vs order MT5 is key to execution clarity
- Pending orders allow automated trading strategies
- Stop-loss and trailing stops are essential for risk management
- Proper use of order types improves trading discipline and performance
While research has been undertaken to compile the above content, it remains an informational and educational piece only. None of the content provided constitutes any form of investment advice.
TIO Markets UK Limited is a company registered in England and Wales under company number 06592025 and is authorised and regulated by the Financial Conduct Authority FRN: 488900
Risk warning: CFDs and Spreadbets are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading CFDs and Spreadbets with this provider. You should consider whether you understand how CFDs and Spreadbets work and whether you can afford to take the high risk of losing your money
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