These are all the available order types by default available using MetaTrader 5.
All orders that are placed on MetaTrader 5 platform by AMP Customers on any Exchange-Traded Futures Contracts are executed on the Regulated Exchanges, such as CME, EUREX, etc....
Below is a brief description of the order types and the order execution logic.
The MetaTrader 5 trading platform allows users to prepare and issue requests for the broker to execute trading operations. In addition, the platform allows to control and manage open positions. For these purposes, several types of trade orders are used. An order is an instruction of a client to conduct a trade operation. In the terminal, orders are divided into two main types: market and pending. Besides them there are "Stop Loss" and "Take Profit" orders.
A market order is an instruction given by client to buy or sell a financial instrument. Execution of this order results in committing a deal at the “market price”. The price at which the deal is conducted is determined by regulated exchange order matching algorithm. Once order is filled, the exchange will report this deal details, such as the fill price and quantity, back to the client via the MetaTrader 5 terminal.
A pending order is the trader's instruction to buy or sell a contract in future under pre-defined conditions. Types of pending orders:
- 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 in the order.
- 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 in the order.
- 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 in the order.
- 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.
- Buy Stop Limit— this type combines the two first types being a stop order for placing Buy Limit. As soon as the Ask price reaches the stop-level indicated in the order (the 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 type is a stop order for placing Sell Limit. As soon as the future Bid price reaches the stop-level indicated in the order (the 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.
All the above-mentioned orders are placed in MetaTrader 5 and are routed to the Exchange.
Because MetaTrader 5 has its own Server where it stores and processes orders, the orders of MetaTrader 5 are linked with the respectable Exchange order by a unique ID.
What this means for a trader? Using these simple, standard order types, they do not have to have their desktop terminals and mobile terminals constantly connected for the orders to be operational, all the calculations are taking part on the MetaTrader 5 and Exchange and are not affected by the terminals.
>> However, for advanced order types such as if you are using a Trading Robot or have setup Trailing Stops (Bracket Orders), your desktop terminal must remain connected to the MetaTrader 5 Server in order for those 2 functions to work, as they are operating only on the client side and NOT Server side.
Additional Explanation on MetaTrader 5 Advanced Order Execution Logic:
For Exchange Contracts, Stop Loss and Take Profit orders are triggered according to the rules of the exchange where trading is performed. Usually this will be by Last price (price of the last performed transaction). In other words, a TP/SL order triggers when the Last price touches the specified TP/SL price.
However buying or selling as a result of the activation of a stop-order is always performed by the Bid and Ask prices during the activation of the Stop order, which may differ from the Price specified by the trader.
What this means for a trader? If you are working a Bracket Order <stop loss & take profit> orders, the take profit order is a MIT (Market Order if Touched) just like the Stop Loss order. Depending on the market conditions, since it is triggering a market order, there will be a difference between the final fill price and the take profit order price. At least 1 tick “slippage” due to the market order fill price of the next available Bid/Offer price.
Key Clarification >> If you work a Straight Limit Order (not connected to a Bracket Order or if you are using an automated trading strategy that uses straight limit orders) the order will work as a standard limit order (filling at your price or better).