Introduction
MetaTrader 5 (MT5) is a powerful trading platform. This guide covers placing various order types, managing positions, and utilizing key features. Learn about market orders for immediate execution and pending orders for strategic entry and exit.
Understanding Order Types on MT5
MT5 provides precise trade control through Market Orders and Pending Orders.
Market Order
A Market Order is an instruction to buy or sell an instrument at the best available price, the most straightforward way to enter or exit a trade, especially in fast-moving markets.
Pending Orders
Pending Orders are instructions to buy or sell an instrument at a specific future price, activating only when the market reaches that level. MT5 offers six pending order types: Buy Limit, Sell Limit, Buy Stop, Sell Stop, Buy Stop Limit, and Sell Stop Limit.
Opening the Order Ticket
To place any trade, open the order ticket. You can do this in several ways:
- From Market Watch: Right-click on the desired instrument in the \'Market Watch\' window and select \'New Order\'.
- From a Chart: Right-click anywhere on the chart of the instrument you wish to trade and select \'Trading\' -> \'New Order\'.
- Hotkey: Press F9 on your keyboard.
- Toolbar: Click the \'New Order\' button on the toolbar.
Setting Lot Size, Stop-Loss, and Take-Profit
Once open, configure your trade using these fields:
- Symbol: The financial instrument you wish to trade (e.g., EURUSD, Gold).
- Type: Choose between \'Market Execution\' (for market orders) or \'Pending Order\'.
- Volume (Lot Size): Trade size in lots (standard: 100,000 units; mini: 0.1; micro: 0.01). Select a lot size aligning with your risk management strategy.
- Stop Loss (SL): Automatically closes trade if price moves against you, limiting potential losses.
- Take Profit (TP): Automatically closes trade when price reaches a specified profit level, securing gains.
- Comment: An optional field to add notes about your trade.
Market Execution
Example (Market Buy): If EUR/USD is currently trading at 1.0850/1.0852 (Bid/Ask), a market buy order would be executed at 1.0852, and a market sell order at 1.0850.
- Open the order ticket.
- Select \'Market Execution\' as the Type.
- Choose your \'Symbol\' and set your \'Volume (Lot Size)\'.
- Optionally, set your \'Stop Loss\' and \'Take Profit\' levels.
- Click \'Buy by Market\' or \'Sell by Market\'.
Pending Order Execution
Example (Buy Limit): If EUR/USD is 1.0850 and you expect a drop to 1.0830 before rising, you will set a Buy Limit order at 1.0830. The order will remain pending until the price reaches 1.0830.
- Open the order ticket.
- Select \'Pending Order\' as the Type.
- Choose your \'Symbol\' and set your \'Volume (Lot Size)\'.
- Select the \'Type\' of pending order (Buy Limit, Sell Limit, Buy Stop, Sell Stop).
- Enter the \'Price\' at which you want the order to be activated.
- Optionally, set \'Stop Loss\' and \'Take Profit\' levels.
- Set an \'Expiration\' time if you want the order to be automatically canceled if not triggered by a certain time.
- Click \'Place\'.
Modifying an Open Trade
Modify Stop Loss and Take Profit levels on any open trade; this is vital for risk management.
- Go to the \'Toolbox\' window (usually at the bottom of the MT5 platform) and select the \'Trade\' tab.
- Locate the open position you wish to modify.
- Right-click on the trade and select \'Modify or Delete\'.
- In the modification window, adjust your Stop Loss and Take Profit levels. You can also drag the SL/TP lines directly to the chart.
- Click \'Modify\'.
Closing a Trade Manually
Manually close an open trade anytime, regardless of whether it has hit its Stop Loss or Take Profit levels.
Alternatively, click the \'x\' icon next to the trade in the \'Trade\' tab for quick closure.
- Go to the \'Toolbox\' window and select the \'Trade\' tab.
- Locate the open position you wish to close.
- Right-click on the trade and select \'Close Position\'.
- Confirm the closure in the pop-up window.
Reading the Toolbox Panel
The Toolbox panel is your command center for managing trades and monitoring your account, including several important tabs:
Regularly check the Trade tab to monitor open positions, assess floating profit/loss, and verify risk management parameters.
- Trade: Displays all open positions and pending orders, including entry price, current price, SL/TP levels, profit/loss, and margin usage.
- Exposure: Shows your current market exposure across different instruments.
- History: Contains a record of all your past trades, deposits, and withdrawals.
- News: Provides financial news directly within the platform.
- Mailbox: Internal messaging system.
- Calendar: Economic calendar with important financial events.
Key Takeaways
- Market Orders execute immediately at the best available price, suitable for instant entry/exit.
- Pending Orders (Buy Limit, Sell Limit, Buy Stop, Sell Stop) allow for strategic entry/exit at predefined future prices.
- Use Stop Loss and Take Profit levels whenever they fit your strategy and risk rules.
- The Toolbox panel is crucial for monitoring open trades, managing pending orders, and reviewing trade history.
- Practice proper lot size management to control your exposure and risk per trade.
- Mastering MT5 trade execution is key to proficiency. Consistent practice and understanding order types enhance trading discipline and strategy efficiency.