MetaTrader 5 (MT5) supports various order types, allowing traders to execute trades based on different strategies and market conditions.
Below is an overview of each order type available on MT5:
Market Execution
A Market Execution order is executed immediately at the best available price. This type of order is used when a trader wants to enter the market instantly, without waiting for a specific price level.
Example: If you place a buy order using Market Execution, the trade will be executed at the current market price.
Buy Limit
A Buy Limit order is a pending order to buy an asset at a price lower than the current market price. It is used when a trader expects the price to drop to a certain level before moving back up.
Example: If the current price of an asset is $1,500, but you believe it will drop to $1,450 before rising, you can place a Buy Limit order at $1,450.
Sell Limit
A Sell Limit order is a pending order to sell an asset at a price higher than the current market price. It is used when a trader expects the price to rise to a certain level before declining.
Example: If the current price is $1,500 and you expect it to rise to $1,550 before dropping, you can place a Sell Limit order at $1,550.
Buy Stop
A Buy Stop order is a pending order to buy an asset above the current market price. It is used when a trader expects the price to continue rising after reaching a certain level.
Example: If the current price is $1,500 and you expect it to break above $1,550 and continue rising, you can place a Buy Stop order at $1,550.
Sell Stop
A Sell Stop order is a pending order to sell an asset below the current market price. It is used when a trader expects the price to continue falling after reaching a certain level.
Example: If the current price is $1,500 and you expect it to drop below $1,450 and continue declining, you can place a Sell Stop order at $1,450.
Buy Stop Limit
A Buy Stop Limit order is a combination of a Buy Stop and a Buy Limit order. When the price reaches a specified stop level, a Buy Limit order is placed. This helps traders avoid slippage by ensuring they don’t buy at an undesired price.
Example: If the current price is $1,500 and you want to buy at $1,550 but only if the price first reaches $1,540, you can set a Buy Stop Limit order with a stop at $1,540 and a limit at $1,550.
Sell Stop Limit
A Sell Stop Limit order is a combination of a Sell Stop and a Sell Limit order. When the price reaches a specified stop level, a Sell Limit order is placed. This allows traders to control the execution price.
Example: If the current price is $1,500 and you want to sell at $1,450 but only if the price first drops to $1,460, you can set a Sell Stop Limit order with a stop at $1,460 and a limit at $1,450.
If you have any questions about order types on MT5, feel free to contact our support team.