Published on: 2025-09-16
MT5 offers six types of pending orders, compared with just four in MT4. giving traders greater flexibility and control.
Pending orders are an advanced trading tool, reflecting a forecast of future market movements. Each order type represents a different trading approach.
Used when the market is expected to pull back slightly but is already near a short-term bottom — essentially a "buy the dip" strategy.
Suitable when the market has room for a short-term rebound but is approaching a short-term top — in other words, "sell the rally."
Placed when the market is at a critical level with signs of a bullish breakout. This allows you to ride the momentum of an upward move.
Used when the market is at a critical level with signs of a bearish breakout. It lets you capture the momentum of a downward move.
Buy Stop Limit and Sell Stop Limit are two types of pending orders newly added in MT5. Unlike the other four order types, they require two conditions to be met before execution.
This order requires two conditions to be met. First, a trigger price is reached, which activates the order. Then the trade is executed only if the market retraces to a specified limit price.
Example: Current price is 62.80. Set a trigger at 65.80 and a limit at 63.80. When the price reaches 65.80. the order is activated. The buy order executes only if the price pulls back to 63.80.
Why use it: Breakouts often face profit-taking, which can prevent continuous upward movement. Waiting for a retracement allows entry at a better level and potentially higher profits.
This works in the opposite direction. Once the price hits the trigger level, the order is activated. The trade executes only if the market rebounds to the defined limit price.
Example: Current price is 62.80. Set a trigger at 60.80 and a limit at 61.80. When the price touches 60.80. the order is activated. The sell order executes only if the price rebounds to 61.80.
Why use it: Downward breakouts often attract buyers, making it difficult for the price to continue falling immediately. The Sell Stop Limit allows entry from a higher level, taking advantage of the rebound to capture profits.
MT5's six pending order types provide six distinct trading strategies. By using these tools effectively, along with disciplined stop-loss and take-profit settings, traders can maximise their opportunities and manage risk with greater precision.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
