Market execution is one important feature of MetaTrader 5. When you use an order execution, you can fulfill your order at the most appropriate available price.
Important details about these orders are inputted manually by the trader and whenever it is triggered, you will be notified and appropriate action will be done.
Pending Order
It is the commitment of the client to the brokerage firm to buy or sell specific security whenever a predetermined price is triggered in the future.
Most of the time, this type of order is used to open a trade position as long as the future quotes can reach the level which is already pre-defined by the trader.
In MT5, there are four types of pending orders – Buy Limit, Sell Limit, Buy Stop, and Sell Stop.
Buy Limit
This is a type of pending order that is placed under the market price.
Buy Limit orders are mostly anticipated at the security price after it has fallen into a particular level, but you are hoping that it will increase.
Sell Limit
This type of pending order is mostly placed above the current market price.
Most of the time, these types of orders are placed in anticipation the security price that has increased will still fall to a particular level.
Buy Stop
This is another useful order type in MT5. Buy Stop is mostly placed right above the market price.
This type of order is mostly placed in the hopes that the security price will keep on increasing despite the fact that it already reached a particular level.
Sell Stop
Similar to the concept of Buy Stop, the only difference is that the security is placed in anticipation that the prices will keep on falling despite reaching a certain level in the market.
In the MT5 trading platform, there is additional market execution than the ones mentioned above that are also found in MetaTrader 4.
These are the Buy Stop Limit and Sell Stop Limit.
Buy Stop Limit
This type of pending order has the combined features of Buy Limit and Buy Stop Orders.
When the Ask price is reached as indicated at the order window, this order will be triggered and take its designed action.
Sell Stop Limit
If the Buy Stop Limit has the combined features of Buy Limit and Buy Stop, Sell Stop Limit now has the combined characteristics of the Sell Limit Order and the Sell Stop Order.
During such time that the Bid Price is reached as stated at the order window, the Sell Stop Limit order will be automatically placed at the order window.
Stop Loss
Another risk management strategy used in MetaTrader 5 is Stop Loss. This reduces the losses whenever the price moves in an unprofitable direction.
Once the position starts to be profitable, then the stop loss can be shifted manually to break even a level.
But you can also automate this process through the use of Trailing Stop.
When the profit reaches a level where it becomes equal or even higher than the current specified level, the Stop Loss order command will be triggered again.
