Types of Orders
The MetaTrader 5 mobile platform allows to prepare requests and request the broker for execution of trading operations. In addition, the platform allows to control and manage the state of open positions. For this purposes, several types of trade orders are used. An order is a trader's instruction to brokerage company to perform a trade operation. In the platform, orders are divided into two main types: market and pending. In addition, there are special Stop Loss and Take Profit orders.
Market Order
A market order is an instruction given to a brokerage company to buy or sell a financial instrument. Execution of such an order will result in a deal. The price at which the deal is executed is determined by the type of execution that depends on the symbol type. Generally, a security is bought at the Ask price and sold at the Bid price.
Pending order
Pending order is the client's instruction to a brokerage company to buy or sell a security at pre-defined conditions in the future. The following types of pending orders are available:
- Buy Limit – a trade request to buy at the Ask price that is equal to or less than that specified in the order. The current price level is higher than the value specified in the order. Usually this order is placed in anticipation of that the security price, having fallen to a certain level, will increase;
- Buy Stop – a trade order to buy at the 'Ask' price equal to or greater than the one specified in the order. The current price level is lower than the value specified in the order. Usually this order is placed in anticipation of that the security price, having reached a certain level, will keep on increasing.
- Sell Limit – a trade order to sell at the 'Bid' price equal to or greater than the one specified in the order. The current price level is lower than the value specified in the order. Usually this order is placed in anticipation of that the security price, having increased to a certain level, will fall;
- Sell Stop – a trade order to sell at the 'Bid' price equal to or less than the one specified in the order. The current price level is higher than the value in the order. Usually this order is placed in anticipation of that the security price will reached a certain level and will keep on falling.
- Buy Stop Limit – this type is the combination of the first two types, being a stop order to place a Buy Limit order. As soon as the future Ask price reaches the stop level specified in the order (Price field), a Buy Limit order will be placed at the level specified in Stop Limit Price field. A stop level is set above the current Ask price, while Stop Limit price is set below the stop level.
- Sell Stop Limit – this order is a stop order to place a Sell Limit order. As soon as the future Bid price reaches the stop level specified in the order (Price field), a Sell Limit order will be placed at the level specified in Stop Limit Price field. A stop level is set below the current Bid price, while Stop Limit price is set above the stop level.
- For symbols with Exchange Stocks, Exchange Futures and Futures Forts calculation modes, all the types of pending orders trigger according to the Last price (price of a last executed deal). In other words, an order triggers when the Last price touches the price specified in the order. But note that buying or selling as a result of triggering of an order is always performed by the Bid and Ask prices.
- In the 'Exchange execution' mode, the price specified when placing limit orders is not verified. It can be specified above the current Ask price (for the Buy Limit orders) and below the current Bid price (for the Sell Limit orders). When placing an order with such a price, it triggers almost immediately and turns into a market one. However, unlike market orders where a trader agrees to perform a deal by a non-specified current market price, a pending order will be executed at a price no worse than the one specified.
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– current market state
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– forecast
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– current price
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– order price
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– price, reaching which a pending order will be placed
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– expected growth
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– Expected fall
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Take Profit
The Take Profit order is intended for gaining the profit when the security price reaches a certain level. Execution of this order results in complete closing of the whole position. It is always connected to an open position or a pending order. The order can be placed only together with the market or pending order. Platform checks long positions with Bid price for meeting of this order provisions (the order is always set above the current Bid price), and it does with Ask price for short positions (the order is always set below the current Ask price).
Stop Loss
This order is intended to minimize the losses if the price of a financial instrument begins moving in the unprofitable direction. If the security price reaches this level, the entire position is closed automatically. Such an order is always connected to an open position or a pending order. The order can be placed only together with a market or a pending order. Platform checks long positions with Bid price for meeting of this order provisions (the order is always set below the current Bid price), and it does with Ask price for short positions (the order is always set above the current Ask price).
- Levels of Take Profit and Stop Loss are set for the position by the last order (market or triggered pending order). In other words, stop levels in each subsequent order of the same position replace previous ones.
- Activation of Take Profit and Stop Loss leads to complete closing of the position.
- For symbols with Exchange Stocks, Exchange Futures and Futures Forts calculation modes, Stop Loss and Take Profit orders trigger according to the Last price (price of a last executed deal). In other words, a stop-order triggers when the Last price touches the specified price. However note that buying or selling as a result of activation of a stop-order is always performed by the Bid and Ask prices.
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Stop Loss and Take Profit inheritance rules (netting):
- When increasing position volume or reverting the position, Take Profit and Stop Loss levels are placed according to its latest order (market or triggered pending order). In other words, stop levels in each subsequent order of the same position replace previous ones. If zero values are specified in the order, Stop Loss and Take Profit of a position will be deleted.
- If a position is partially closed, Stop Loss and Take Profit are not changed by the new order.
- If a position is fully closed, the Stop Loss and Take Profit levels are deleted, because they are associated with an open position and cannot exist without it.
- When a trade operation is executed for a symbol, for which there is a position, the current Stop Loss and Take Profit of the open position are automatically inserted in the order placing window. This is aimed to prevent accidental deletion of current stop orders.
- During one click trading operation from executed the Market Depth for the symbol, for which there is a position, the current values of Stop Loss and Take Profit are not changed.
- On the OTC markets (Forex, CFD, Futures), when a position is moved to the next trading day (the swap), including through re-opening, the levels of Stop Loss and Take Profit are remain unchanged.
- On the exchange market, when a position is moved to the next trading day (the swap), as well as when moved to another account or during delivery, the levels of Stop Loss and Take Profit are reset.
Stop Loss and Take Profit inheritance rules (hedging):
- If a position is partially closed, Stop Loss and Take Profit are not changed by the new order.
- If a position is fully closed, the Stop Loss and Take Profit levels are deleted, because they are associated with an open position and cannot exist without it.
- During one click trading operation executed from the Depth of Market, the Stop Loss and Take Profit levels are not set.
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