MT4 and MT5 Order Types, Organized Around the Current Price > Learning materials

Mixing up Limit and Stop and placing a pending order in the opposite direction is more common than you would think. The four pending orders are easy to memorize if you sort them by whether they sit above or below the current price.

Limit Waits, Stop Follows

A Limit is an order that waits for a more favorable price. Buy Limit sits below the current price, and Sell Limit sits above it. A Stop is an order that confirms the move and follows it. Buy Stop sits above the current price, and Sell Stop sits below it.

The Order Price and the Fill Price Can Differ

In fast-moving conditions or price gaps, the fill may come not at the price you set but at the next available price. Stop orders in particular are triggered in conditions that are already moving quickly, so slippage tends to be larger. Learn the process of placing, modifying, and cancelling each order type on a demo account first.

Verification Checklist

• Can you explain where each of the four pending orders sits relative to the current price?
• Do you enter the stop loss and the target at the same time you place the order?
• Do you know the order expiry setting and how to cancel?
• Have you placed, modified, and cancelled orders yourself on a demo account?

This article is community learning material and is not investment advice, a personal recommendation, or a solicitation to trade. Leveraged products can produce large losses in a short period of time, and actual product terms and costs must be checked directly in the official documents and your account screen at the time of use.