Forex Order Types: Market, Limit and Stop Orders and How to Use Them in MT5
Are you confused about the difference between limit and stop orders every time you place one?
In short, think of it as either waiting at a price you specify, or acting once a condition is reached.
This article covers MT5 order types, price positions, expiry settings and cases where an order is not filled.
Key takeaways
- Think of forex orders as market, limit and stop: a limit order waits for a better price, and a stop order triggers once price breaks through.
- A Buy Limit goes below the current price and a Buy Stop above it, and in MT5 you can attach SL and TP at the same time.
- Buys are judged on the Ask and sells on the Bid, so an order may not fill even when the chart reaches the level.
In short: think of orders as three types, market, limit and stop
- A market order fills right away at the current price, while limit and stop orders wait at a price you specify
- A limit order waits for a better price, and a stop order triggers when price moves through a level against you
- In MT5, adding SL/TP to a pending order lets you build something close to IFD, OCO and IFO
- Stop and market orders can see slippage, where the fill price differs from your order
Main forex order types and their differences
Orders fall broadly into those that fill immediately and those that wait on conditions you set. The latter are called pending orders.
| Type | Name in MT5 | How it works | Typical use |
|---|---|---|---|
| Market | Market execution | Fills immediately at the price at that moment | When you want to get in or cut a position right away |
| Limit | Buy Limit / Sell Limit | Fills when price reaches the better price you specify | When waiting for a pullback to buy or a rally to sell |
| Stop | Buy Stop / Sell Stop | Triggers as a market order once price breaks through the level you specify | Trend-following breakouts and stop-losses |
| Stop limit | Buy Stop Limit / Sell Stop Limit | Places a limit order once price reaches the specified level | When you want to enter on the pullback after a breakout |
Features of a market order
A market order is the order most likely to be filled. However, if price moves between the moment you press the order button and the fill, the price differs from what was on your screen.
How to think about limit and stop orders
It helps to remember a limit order as "when price comes to this level" and a stop order as "when price breaks through this level". The difference is that a stop order becomes a market order once triggered.
Limit and stop order positions in one table
What trips up beginners most is whether the order goes above or below the current price. A Buy Limit goes below the current price, and a Buy Stop goes above it.
| Order | Direction | Where it goes | Example (current price 1.0800) |
|---|---|---|---|
| Buy Limit | Buy | Below the current price | Buy if price falls to 1.0780 |
| Buy Stop | Buy | Above the current price | Buy if price breaks above 1.0820 |
| Sell Limit | Sell | Above the current price | Sell if price rises to 1.0820 |
| Sell Stop | Sell | Below the current price | Sell if price breaks below 1.0780 |
How to place a pending order in MT5
In MT5, you switch the type on the new order screen to place a pending order. SL and TP can be entered together on the same screen.
- 1
Open the new order screen
Select a symbol and open New Order (F9). In the mobile app, tap the symbol and choose Trade.
- 2
Choose the order type
Switch "Market Execution" to "Pending Order" and choose a type, such as Buy Limit or Buy Stop.
- 3
Enter the price and lot size
Enter the price at which you want the order to fill and the lot size. Use a lot size worked back from your stop-loss distance.
- 4
Enter SL and TP
Enter the stop-loss price as SL and the take-profit price as TP. They can be attached in advance even to a pending order.
- 5
Choose an expiry and send
Choose an expiry type (explained below) and place the order. After that, you can check it in the Trade tab at the bottom of the terminal.
IFD, OCO and IFO, and how to build them in MT5
IFD, OCO and IFO, which are often used in Japanese domestic forex, have no feature of the same name in MT5. However, you can build the same patterns by combining pending orders with SL/TP.
- IFD: attach SL or TP to a new pending order. The closing order takes effect after the fill
- OCO: a setup where, of two orders, the other is cancelled when one fills. MT5 has no dedicated feature, so you build something similar manually or with automated trading
- IFO: attach both SL and TP to a pending order. After the fill, the position closes when either one is reached
- When you place two orders to catch both a breakout up and a breakout down, cancel the remaining one manually once the other fills
Trailing stops and expiry settings
A trailing stop automatically moves your SL in your favor once an unrealized profit appears. In MT5, it works only while the terminal is running and logged in.
- If you close your PC or the mobile app, the trailing stop stops working
- If price reverses in the meantime, the position may close at the SL position it had reached
- If you want the terminal running at all times, using a VPS is also an option
Types of expiry
A pending order has an expiry that sets how long it stays valid. It helps prevent a forgotten order from filling at an unexpected time.
| Expiry | Name in MT5 | Meaning |
|---|---|---|
| No expiry | GTC (Good Till Cancelled) | Valid until you cancel it |
| Today only | Today | Valid until the end of that trading day |
| Specified date and time | Specified | Valid until the date and time you set |
| Specified day | Specified Day | Valid until the end of the day you set |
Orders that see slippage and orders that do not
Slippage is the gap between the price you ordered at and the fill price. How likely it is depends on the order type.
- Market: fills at the quoted price at that moment, so a gap can occur
- Stop: becomes a market order once triggered, so it tends to fill at an unfavorable price in a sudden move
- Limit: fills at the specified price or better, so an unfavorable gap is unlikely
- A limit order may not fill even when price reaches the level, so it is less certain to fill
Avoid market orders right before and after data releases
At releases such as the jobs report, price can jump and spreads widen. Market and stop orders may fill far from where you expected.
When a pending order is not filled
There are times when price reached the level on the chart but your order was not filled. The cause is often a difference in the price used for the judgment.
- Buy orders are judged on the Ask price and sell orders on the Bid price
- Charts are drawn on the Bid, so a Buy Limit does not fill when the chart reaches the level, until the Ask reaches it
- Note that the judging price is reversed for the SL of a sell and the TP of a buy
- The order expired, or it was cancelled because of insufficient margin
- While the market is closed, orders do not move
How order types relate to cashback
Many cashback schemes are calculated based on trading volume (lots). Whether you use a market order or a pending order, trades that fill and are completed are the basic target.
Cashback amounts are not yet confirmed and will be published on each broker page at launch. Rather than choosing an order method based on rebates, choose the one that fits your trading plan.
Enter a currency pair and lot size to check the value of one pip. Try it before you decide the distances for your SL and TP.
Calculate pip valueFAQ
Q.What is the difference between a limit order and a stop order?
A limit order waits for a better price and then fills. A stop order triggers when price breaks through the level you specify and fills as a market order. As a rule, use a limit order to wait for a pullback, and a stop order for breakouts or stop-losses.
Q.Does MT5 have IFD, OCO and IFO?
There is no feature of the same name. Attaching SL and TP to a pending order lets you build something close to IFD or IFO. For OCO-style behavior, where the other order is cancelled when one fills, you make up for it manually or with automated trading.
Q.Does a trailing stop work if I close the terminal?
The standard trailing stop in MT5 works only while the terminal is running and logged in. It stops when you close it, so if you want it running at all times, consider options such as a VPS.
Q.Why was my order not filled even though the chart reached my limit price?
This is because buy orders are judged on the Ask and sell orders on the Bid. Charts are drawn on the Bid, so a Buy Limit may not fill unless price falls further by the amount of the spread.
This article is for information purposes only and is not investment advice. Conditions may change, so please check each broker's official page for the latest information. Offshore FX and CFD trading carries a risk of losses exceeding your principal.
