A pending order is an instruction to buy or sell a product when specified price conditions are met. Unlike a market order, it waits for its trigger conditions rather than requesting immediate execution.
Reaching the specified price does not guarantee execution. Execution also depends on available liquidity, trading permissions, margin and the order’s conditions.
Limit orders
Limit orders specify the price at which you are willing to buy or sell, or a more favorable price.
| Order type | Where the price is set | Purpose |
|---|---|---|
| Buy Limit | Below the current Ask price | Buy at the specified price or lower |
| Sell Limit | Above the current Bid price | Sell at the specified price or higher |
Ask is the price at which you can buy. Bid is the price at which you can sell.
Stop orders
Stop orders trigger a trading request when the market reaches the specified level.
| Order type | Where the trigger is set | Trigger condition |
|---|---|---|
| Buy Stop | Above the current Ask price | Ask reaches or rises above the stop price |
| Sell Stop | Below the current Bid price | Bid reaches or falls below the stop price |
The stop price is a trigger, not a guaranteed execution price. A price gap or rapid market movement may cause execution at a different price.
Stop Limit orders
Stop Limit orders combine a stop trigger with a limit order. Reaching the stop price places the limit order; it does not immediately guarantee a trade.
| Order type | Stop trigger | What happens after triggering |
|---|---|---|
| Buy Stop Limit | Set above the current Ask price | A Buy Limit order is placed at the specified limit price, below the stop trigger |
| Sell Stop Limit | Set below the current Bid price | A Sell Limit order is placed at the specified limit price, above the stop trigger |
The market must subsequently meet the limit order’s conditions for execution. The order may remain unfilled.
Which types are available in MT4 and MT5?
MetaTrader 4 (MT4) supports Buy Limit, Sell Limit, Buy Stop and Sell Stop orders.
MetaTrader 5 (MT5) also supports Buy Stop Limit and Sell Stop Limit orders, subject to the order types permitted for the selected product.
