One of the most practical skills a new trader can develop is understanding how to enter and exit the market correctly. Many beginners focus heavily on analysis—when to trade—while underestimating the importance of execution—how to trade. MetaTrader 5 offers a range of order types that give traders precise control over their entries and exits. Knowing how each one works is central to understanding how to trade MT5 for beginners at a professional level.
This guide explains every major order type available on MT5, when to use each one, and how combining them with solid risk management creates a disciplined trading framework.
Why Does Understanding Order Types Matter?
An order is simply an instruction sent to the market. Depending on the type of order you place, that instruction can be executed immediately, at a future price, or under specific conditions. Choosing the wrong order type at the wrong time can result in poor entry prices, missed opportunities, or unexpected losses.
MT5 gives traders access to both instant execution and pending orders. Mastering the difference between these two categories—and knowing when to use each—is a core competency that separates confident traders from those who feel uncertain every time they open the order window.
What Is a Market Order and When Should You Use It?
A market order is an instruction to buy or sell an asset immediately at the best available current price. It is the simplest and most commonly used order type among beginners.
When to use it: Market orders work best in highly liquid markets where the spread between the bid and ask price is small. If you want immediate execution and the current price is acceptable for your trade setup, a market order is the right choice.
What to watch out for: In fast-moving or low-liquidity markets, the price at which your market order executes may differ from the price you saw when you clicked “Buy” or “Sell.” This is called slippage. MT5 allows you to set a maximum deviation (in points) from the requested price, which helps control slippage.
What Are Pending Orders and How Do They Work on MT5?
Pending orders allow you to set a specific price at which you want your trade to execute in the future. MT5 offers four types of pending orders:
Buy Limit
A Buy Limit order is placed below the current market price. You use it when you expect price to pull back to a specific support level before continuing upward. The order will only execute if price drops to your specified level.
Example scenario: Price is currently trading at a certain level, but you believe a retracement toward a nearby support zone offers a better entry. You place a Buy Limit at that support level and wait.
Sell Limit
A Sell Limit order is placed above the current market price. Use it when you expect price to rise to a resistance level before reversing downward.
Buy Stop
A Buy Stop order is placed above the current market price. It’s used by breakout traders who want to enter a long position only if price breaks above a specific resistance level, confirming bullish momentum.
Sell Stop
A Sell Stop order is placed below the current market price. Breakout traders use it to enter short positions when price breaks below a key support level.
What Are Stop Loss and Take Profit Orders?
Stop loss and take profit orders are risk management tools attached to open or pending trades. They define the maximum loss you’re willing to accept and the profit target at which your trade automatically closes.
Stop Loss: When price reaches your stop loss level, MT5 closes the trade automatically. This prevents small losses from becoming large, unrecoverable ones. Setting a stop loss is not optional for disciplined traders—it’s a non-negotiable part of every trade.
Take Profit: When price reaches your take profit level, MT5 closes the trade and locks in your gains. Using a take profit removes the emotional temptation to hold a winning trade too long and risk giving back profits.
Together, stop loss and take profit levels define the risk-to-reward ratio of your trade before you enter. A trader who sets a stop loss at a defined level below entry and a take profit at twice that distance above entry has established a risk-to-reward ratio that supports long-term profitability—even if they win fewer trades than they lose.
What Is a Trailing Stop and How Does It Benefit Beginners?
A trailing stop is a dynamic version of a stop loss. Rather than remaining fixed at a specific price, a trailing stop moves in the direction of a profitable trade by a set number of points. If price reverses, the trailing stop holds its most recent position and closes the trade if price moves against you by the defined distance.
Why it’s valuable: Trailing stops allow traders to ride strong trends without manually adjusting their stop loss. When price moves significantly in your favor, the trailing stop locks in progressively higher levels of profit, protecting gains without capping the trade’s upside.
To set a trailing stop in MT5, right-click on an open trade in the Terminal panel and select “Trailing Stop” from the menu. Choose your preferred distance in points.
What Is the Difference Between Stop Out and Margin Call in MT5?
Understanding margin-related concepts is essential for anyone trading leveraged products on MT5.
Margin Call: This is a notification from your broker that your account equity has fallen below the required margin level to maintain your open positions. It’s a warning signal to deposit additional funds or close some positions.
Stop Out: If your equity continues to fall after a margin call, the broker will automatically close your positions—starting with the least profitable—to prevent your account from going into negative balance. This is called a stop out.
The best way to avoid margin calls and stop outs is straightforward: keep your risk per trade small and maintain a healthy account buffer beyond the required margin. MT5 displays your margin level in real time at the bottom of the Terminal panel.
About MT5 Order Types
Can I modify or cancel a pending order after placing it?
Yes. In the Terminal panel under the “Trade” tab, right-click on any pending order and select “Modify or Delete Order.” You can adjust the price, stop loss, take profit, or expiry time at any point before the order is triggered.
What happens to a pending order if I close MT5?
Pending orders are stored on the broker’s server, not your local device. They remain active even if you close the platform, as long as the order hasn’t expired or been cancelled.
Should beginners use market orders or pending orders?
Both have their place. Market orders suit fast-moving setups where immediate execution matters. Pending orders suit planned entries at specific price levels, which often leads to better entry prices and more disciplined trading.
Can I set an expiry time on a pending order in MT5?
Yes. When placing a pending order, you can set a “Good Till Date” option, after which the order automatically cancels if not triggered.
What is a “Good Till Cancelled” order on MT5?
MT5 pending orders without a specified expiry date remain active until manually cancelled or triggered. This is functionally equivalent to a “Good Till Cancelled” order.
Executing Trades With Precision and Purpose
Mastering MT5’s order types gives you something invaluable: control. Every trade you place carries intention—a defined entry point, a defined risk, and a defined target. This structure doesn’t eliminate uncertainty from trading, but it transforms you from a reactive participant into a deliberate decision-maker.
Practice setting up different order types on a demo account. Experiment with pending orders, trailing stops, and different risk-to-reward configurations. The more familiar you become with these mechanics, the more confident and consistent your trading will become.