Steps for Placing Market, Pending, and Stop Orders in MetaTrader 5 (MT5)

MetaTrader 5 (MT5), is considered by many to be the most advanced trading platform for both retail and professional traders. It has a wide range of order types, a multi-faceted system for executing orders, detailed charting tools and sophisticated order types. It is important for traders to understand how to use MT5’s market orders, pending orders and stop orders. No matter your level of experience, these order types will help you optimize trades and control associated risks.

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Market Orders: Execution At The Price Given Immediately

The Market Order is one of the easiest orders. The market order is the easiest of all orders. It is executed according to the current market price. This is useful for traders who want to enter or exit trades quickly.

How To Place A Market Order In MT5

1. New Order Window

You can either right-click the chart, or go to “Tools”, and choose “New Order”. F9 is also a keyboard shortcut.

2. Select The Instrument And Set The Volume

Choose the correct instrument (e.g. EUR/USD) in the dropdown menu. Set the volume you want to trade (lot size).

3. Select The Execution Type

Make sure that “Market Execution Type” is selected.

4. Purchase Or Sell An Order

To go long, select Buy Market. Sell Market is the option to take a short-term position.

The trade is automatically executed at the current market rate. This approach may seem convenient and fast, but it can also result in price slippage during times of high volatility.

Pending Orders: Plan Your Trades In Advance

A Pending Order allows you to set up a trade which will be executed automatically when the market reaches an agreed price level. This strategy can be used to predict price levels or trade price points.

There are four main types of pending order in MT5.

• Buy limit: Purchase at a lower price than the current market value.
• Sell limit: A price that is more favorable than the current market price.
• Buy Stop: Purchase the product at a price that is more advantageous than the current market price.
• Sell Stop: Selling a product at a price lower than the current market price.

How To Set A Pending Order

1. Create A New Order Window

You can access the orders window by using the F9 shortcut, or by clicking on the chart and selecting “Trading” then “New Order”.

2. Change Your Order Preference

In the “Type” field, change “Market Execution to Pending Order”.

3. Select The Order Type To Assign Price

Select one of four types of pending orders based on your strategy.

You can specify the price at which you want your order to be activated.

4. Set An Expiry Date That Is Pending (Optional)

Set an end date and time for the order.

5. Set The Order

Hit Place and the order will appear in the Trade section, either as active or pending cancellation.

In order to achieve breakouts and pullbacks, pending orders are used. You can wait until the price reaches key levels of support or resistance before you take a position.

Stop Orders To Safeguard Your Capital

In MT5 the functionality of placing stop orders involves two key actions: managing risks through a Stop-Loss and securing profit through a Take Profit. Stop orders can be linked to both market and pending orders.

• Stop Loss (SL), also known as a stop order, is a way to minimize your losses if a trade goes against you.
• Take Profit (TP). A take profit closes a trade when the position moves in a favorable direction, and secures pre-specified gains.

How To Set Stop Loss And Take Profit

1. Trade Initiation

Select Buy or Sell and enter the SL and TP values.

2. Orders Can Be Modified

The terminal window has a Trade Tab in the lower portion of the screen.

Click the “Modify or Delete order” button under the Trade Tab.

Set desired Stop Loss levels and Take Profit Levels in the pop-up box and click Modify.

Traders can set SL/TP levels to encourage disciplined trading by using negative risk to negative reward strategies (risk-reward ratio), or ATR values.

Order Assignment Using Order Charts

Charts in MetaTrader 5 (MT5) make it easier to manage and place orders. This adds a new layer of intuitiveness to trading.

To Place Orders Via Chart:

Right-click on the desired price and then navigate to:

• Trading > Buy Limit/Sell Limit/Buy Stop/Sell Stop
• Drag the order directly onto the chart to adjust it.
• SL and TP can be changed visually by dragging respective lines into the desired position.

This feature is especially useful for traders that base their trading decisions on price and chart patterns.

Final Thoughts

To execute well-planned, strategic trading, it is essential to place orders efficiently in MT5. This includes market, pending and stop orders. Market orders allow you to gain immediate exposure. You can plan future exposure with pending orders. Stop loss and take-profit levels are crucial for managing risk and protecting profits.

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