OrderTypes
Mastering Order Types
Mastering Order Types
By
Traidx
Learn how each MetaTrader 5 order type works and understand when to use it in different market situations.
In This Guide:
This guide explains Market Execution, Limit Orders, Stop Orders, and Stop Limit Orders, helping you choose the right entry method for every trade.
Getting Started
Before placing any trade, it is important to understand the different Order Types available in MetaTrader 5.
An order simply tells your trading platform when and how you want to enter the market. You can either enter immediately at the current market price or prepare an order that will only be activated once the market reaches a specific price.
Understanding these order types helps you enter trades more precisely and avoid opening positions at the wrong price.
Market Execution
Market Execution is the simplest way to enter a trade. When using Market Execution, your position is opened immediately at the currently available market price. You do not wait for the market to reach another level first.
For example, if XAU/USD is currently trading around 4,100 and you want to enter a Buy position immediately, you select Market Execution and tap Buy by Market. If you expect the price to fall instead, you tap Sell by Market.
For many Traidx signals, Market Execution can be used when the price is already inside the provided Entry Zone.
Keep in mind that markets can move quickly, so the final execution price may differ slightly from the price displayed when you press Buy or Sell.
Pending Orders
Pending Orders work differently. Instead of entering the market immediately, you define a specific price at which MetaTrader should automatically open your trade. This is useful when the market has not yet reached your planned Entry Zone or when you want to prepare a trade in advance.
There are two basic types of Pending Orders:
Limit Orders are used when you expect the market to reach a certain level and then reverse.
Stop Orders are used when you expect the market to reach a certain level and then continue moving in the same direction.
Buy Limit
A Buy Limit is placed below the current market price. You use it when you expect the price to fall first, reach your chosen level, and then move higher.
For example:
XAU/USD is currently trading at 4,100. You believe that the area around 4,080 could act as support and expect the market to rise from there. Instead of waiting for the price to reach 4,080 manually, you can place:
Buy Limit: 4,080
If the price falls to 4,080, MetaTrader automatically opens your Buy position. If the market never reaches that price, the order remains pending and no trade is opened.
A simple way to remember it: Buy Limit = Buy below the current market price.
Sell Limit
A Sell Limit is placed above the current market price. You use it when you expect the price to rise first, reach a resistance area, and then move lower.
For example:
XAU/USD is currently trading at 4,100. You believe the area around 4,130 could act as resistance. You can place:
Sell Limit: 4,130
If the market rises to 4,130, MetaTrader automatically opens your Sell position. The idea behind a Sell Limit is therefore that the market moves up into your Entry Zone before reversing lower.
A simple way to remember it: Sell Limit = Sell above the current market price.
Buy Stop
A Buy Stop is also placed above the current market price, but the logic is different from a Sell Limit. With a Buy Stop, you are not expecting a reversal. Instead, you expect the market to continue higher once a certain level is broken.
For example:
XAU/USD is trading at 4,100 and there is resistance around 4,120. You believe that if the market breaks above this level, the bullish movement could continue. You could place:
Buy Stop: 4,125
If the market reaches 4,125, your Buy position is opened automatically. A simple way to remember it:
A simple way to remember it: Buy Stop = Buy above the current price after a breakout.
Sell Stop
A Sell Stop works in the opposite direction. It is placed below the current market price and is used when you expect the market to continue falling after breaking an important level.
For example:
XAU/USD is currently trading at 4,100. You believe that if the market breaks below 4,080, the price could continue lower. You could place:
Sell Stop: 4,075
Once price reaches 4,075, MetaTrader automatically opens your Sell position.
A simple way to remember it: Sell Stop = Sell below the current price after a breakout.
Limit Orders vs. Stop Orders
This is one of the most important differences to understand. With a Limit Order, you expect the market to reach your Entry Price and then reverse direction.
Example:
Price falls → Buy Limit → You expect price to rise.
Price rises → Sell Limit → You expect price to fall.
With a Stop Order, you expect the market to reach your Entry Price and then continue moving in the same direction.
Example:
Price rises → Buy Stop → You expect price to continue higher.
Price falls → Sell Stop → You expect price to continue lower.
The easiest way to remember the difference is:
Limit = Reversal
Stop = Continuation
Buy Stop Limit
A Buy Stop Limit combines two different order types and is slightly more advanced. First, the market must reach a predefined Stop Price. Once that happens, MetaTrader places a Buy Limit at another specified price.
For example:
XAU/USD is trading at 4,100.
You want to see a breakout above 4,120 first, but you do not want to buy immediately after the breakout. Instead, you want to wait for a small pullback to 4,115.
You could set:
Stop Price: 4,120
Buy Limit Price: 4,115
Once the market reaches 4,120, the Buy Limit at 4,115 becomes active. The position only opens if the market then returns to 4,115. This order type combines breakout confirmation with a pullback entry.
Sell Stop Limit
A Sell Stop Limit follows the same principle in the opposite direction. First, the market needs to fall to a specific Stop Price. After that level is reached, a Sell Limit is activated at another price.
For example:
XAU/USD is trading at 4,100.
You want the market to break below 4,080 first, but you only want to enter if price later moves back toward 4,085.
You could set:
Stop Price: 4,080
Sell Limit Price: 4,085
Once the market reaches 4,080, the Sell Limit at 4,085 becomes active. The position only opens if the market then returns to 4,085
For beginners, these Stop Limit orders are not essential at the beginning. It is more important to first understand Market Execution, Buy Limit, Sell Limit, Buy Stop, and Sell Stop.
Choosing the Right Order Type
The correct order type always depends on where the market currently is and what you expect it to do next.
If you want to enter immediately at the current price, use:
Market Execution
If you expect price to move toward your level and then reverse, use:
Buy Limit or Sell Limit
If you expect price to break a level and continue, use:
Buy Stop or Sell Stop
If you want a breakout first and then a pullback before entering, you can use:
Buy Stop Limit or Sell Stop Limit
Before confirming any order, always check the current market price and make sure your selected order type matches your trading idea.
Managing Pending Orders
A Pending Order is not yet an active position. It simply waits in your MetaTrader account until the market reaches the specified Entry Price. You can find your Pending Orders in the Trade section.
From here, you can modify:
Entry Price
Stop Loss
Take Profit
Expiration
You can also delete the order completely if your trading setup is no longer valid. Once the market reaches your Entry Price, the Pending Order automatically becomes an active trade.
Stop Loss & TakeProfit
You can already add your Stop Loss and Take Profit when placing most Pending Orders.This allows you to prepare the entire trade before the position is even opened.
For example:
Buy Limit: 4,080
Stop Loss: 4,070
Take Profit: 4,110
If the market reaches 4,080, the position opens automatically with your predefined Stop Loss and Take Profit levels.
For a complete explanation of these levels, read our dedicated Stop Loss & Take Profit Guide.
Using Order Types with Traidx Signals
Every Traidx signal contains an Entry Zone. Before entering a signal, first check where the current market price is compared with this Entry Zone. If price is already inside the Entry Zone, Market Execution may be the easiest way to enter the position. If the market has not reached the Entry Zone yet, a Pending Order may sometimes be used to prepare the trade in advance.
However, a Pending Order should never be placed automatically without understanding the setup. Always check whether the order type matches the expected market movement.
Final Notes
Order Types simply define how and when you enter a trade. You do not need to learn every advanced order immediately. Start with the core concepts:
Market Execution for entering now.
Limit Orders for reversals.
Stop Orders for breakouts and continuation.
Once these concepts are clear, the more advanced Stop Limit orders become much easier to understand. Before placing any trade, always double-check your Entry Price, Order Type, Lot Size, Stop Loss, and Take Profit.
A correct entry is important, but proper risk management is always more important.
Getting Started
Before placing any trade, it is important to understand the different Order Types available in MetaTrader 5.
An order simply tells your trading platform when and how you want to enter the market. You can either enter immediately at the current market price or prepare an order that will only be activated once the market reaches a specific price.
Understanding these order types helps you enter trades more precisely and avoid opening positions at the wrong price.
Market Execution
Market Execution is the simplest way to enter a trade. When using Market Execution, your position is opened immediately at the currently available market price. You do not wait for the market to reach another level first.
For example, if XAU/USD is currently trading around 4,100 and you want to enter a Buy position immediately, you select Market Execution and tap Buy by Market. If you expect the price to fall instead, you tap Sell by Market.
For many Traidx signals, Market Execution can be used when the price is already inside the provided Entry Zone.
Keep in mind that markets can move quickly, so the final execution price may differ slightly from the price displayed when you press Buy or Sell.
Pending Orders
Pending Orders work differently. Instead of entering the market immediately, you define a specific price at which MetaTrader should automatically open your trade. This is useful when the market has not yet reached your planned Entry Zone or when you want to prepare a trade in advance.
There are two basic types of Pending Orders:
Limit Orders are used when you expect the market to reach a certain level and then reverse.
Stop Orders are used when you expect the market to reach a certain level and then continue moving in the same direction.
Buy Limit
A Buy Limit is placed below the current market price. You use it when you expect the price to fall first, reach your chosen level, and then move higher.
For example:
XAU/USD is currently trading at 4,100. You believe that the area around 4,080 could act as support and expect the market to rise from there. Instead of waiting for the price to reach 4,080 manually, you can place:
Buy Limit: 4,080
If the price falls to 4,080, MetaTrader automatically opens your Buy position. If the market never reaches that price, the order remains pending and no trade is opened.
A simple way to remember it: Buy Limit = Buy below the current market price.
Sell Limit
A Sell Limit is placed above the current market price. You use it when you expect the price to rise first, reach a resistance area, and then move lower.
For example:
XAU/USD is currently trading at 4,100. You believe the area around 4,130 could act as resistance. You can place:
Sell Limit: 4,130
If the market rises to 4,130, MetaTrader automatically opens your Sell position. The idea behind a Sell Limit is therefore that the market moves up into your Entry Zone before reversing lower.
A simple way to remember it: Sell Limit = Sell above the current market price.
Buy Stop
A Buy Stop is also placed above the current market price, but the logic is different from a Sell Limit. With a Buy Stop, you are not expecting a reversal. Instead, you expect the market to continue higher once a certain level is broken.
For example:
XAU/USD is trading at 4,100 and there is resistance around 4,120. You believe that if the market breaks above this level, the bullish movement could continue. You could place:
Buy Stop: 4,125
If the market reaches 4,125, your Buy position is opened automatically. A simple way to remember it:
A simple way to remember it: Buy Stop = Buy above the current price after a breakout.
Sell Stop
A Sell Stop works in the opposite direction. It is placed below the current market price and is used when you expect the market to continue falling after breaking an important level.
For example:
XAU/USD is currently trading at 4,100. You believe that if the market breaks below 4,080, the price could continue lower. You could place:
Sell Stop: 4,075
Once price reaches 4,075, MetaTrader automatically opens your Sell position.
A simple way to remember it: Sell Stop = Sell below the current price after a breakout.
Limit Orders vs. Stop Orders
This is one of the most important differences to understand. With a Limit Order, you expect the market to reach your Entry Price and then reverse direction.
Example:
Price falls → Buy Limit → You expect price to rise.
Price rises → Sell Limit → You expect price to fall.
With a Stop Order, you expect the market to reach your Entry Price and then continue moving in the same direction.
Example:
Price rises → Buy Stop → You expect price to continue higher.
Price falls → Sell Stop → You expect price to continue lower.
The easiest way to remember the difference is:
Limit = Reversal
Stop = Continuation
Buy Stop Limit
A Buy Stop Limit combines two different order types and is slightly more advanced. First, the market must reach a predefined Stop Price. Once that happens, MetaTrader places a Buy Limit at another specified price.
For example:
XAU/USD is trading at 4,100.
You want to see a breakout above 4,120 first, but you do not want to buy immediately after the breakout. Instead, you want to wait for a small pullback to 4,115.
You could set:
Stop Price: 4,120
Buy Limit Price: 4,115
Once the market reaches 4,120, the Buy Limit at 4,115 becomes active. The position only opens if the market then returns to 4,115. This order type combines breakout confirmation with a pullback entry.
Sell Stop Limit
A Sell Stop Limit follows the same principle in the opposite direction. First, the market needs to fall to a specific Stop Price. After that level is reached, a Sell Limit is activated at another price.
For example:
XAU/USD is trading at 4,100.
You want the market to break below 4,080 first, but you only want to enter if price later moves back toward 4,085.
You could set:
Stop Price: 4,080
Sell Limit Price: 4,085
Once the market reaches 4,080, the Sell Limit at 4,085 becomes active. The position only opens if the market then returns to 4,085
For beginners, these Stop Limit orders are not essential at the beginning. It is more important to first understand Market Execution, Buy Limit, Sell Limit, Buy Stop, and Sell Stop.
Choosing the Right Order Type
The correct order type always depends on where the market currently is and what you expect it to do next.
If you want to enter immediately at the current price, use:
Market Execution
If you expect price to move toward your level and then reverse, use:
Buy Limit or Sell Limit
If you expect price to break a level and continue, use:
Buy Stop or Sell Stop
If you want a breakout first and then a pullback before entering, you can use:
Buy Stop Limit or Sell Stop Limit
Before confirming any order, always check the current market price and make sure your selected order type matches your trading idea.
Managing Pending Orders
A Pending Order is not yet an active position. It simply waits in your MetaTrader account until the market reaches the specified Entry Price. You can find your Pending Orders in the Trade section.
From here, you can modify:
Entry Price
Stop Loss
Take Profit
Expiration
You can also delete the order completely if your trading setup is no longer valid. Once the market reaches your Entry Price, the Pending Order automatically becomes an active trade.
Stop Loss & TakeProfit
You can already add your Stop Loss and Take Profit when placing most Pending Orders.This allows you to prepare the entire trade before the position is even opened.
For example:
Buy Limit: 4,080
Stop Loss: 4,070
Take Profit: 4,110
If the market reaches 4,080, the position opens automatically with your predefined Stop Loss and Take Profit levels.
For a complete explanation of these levels, read our dedicated Stop Loss & Take Profit Guide.
Using Order Types with Traidx Signals
Every Traidx signal contains an Entry Zone. Before entering a signal, first check where the current market price is compared with this Entry Zone. If price is already inside the Entry Zone, Market Execution may be the easiest way to enter the position. If the market has not reached the Entry Zone yet, a Pending Order may sometimes be used to prepare the trade in advance.
However, a Pending Order should never be placed automatically without understanding the setup. Always check whether the order type matches the expected market movement.
Final Notes
Order Types simply define how and when you enter a trade. You do not need to learn every advanced order immediately. Start with the core concepts:
Market Execution for entering now.
Limit Orders for reversals.
Stop Orders for breakouts and continuation.
Once these concepts are clear, the more advanced Stop Limit orders become much easier to understand. Before placing any trade, always double-check your Entry Price, Order Type, Lot Size, Stop Loss, and Take Profit.
A correct entry is important, but proper risk management is always more important.
