Learn everything about MT4 order types like buy stop, sell stop, sell limit, buy limit, mt4 market buy order and market sell order in this post.
You see, the MT4 trading platform really makes orders so easy in that there are only 2 Main Types of MT4 orders:
- Pending orders (there are 4 types: buy stop, sell stop, sell limit, buy limit)
- Market Execution Orders ( Buy by Market, Sell by Market)
Lets get more into detail of how each of these MT4 oder types work and in what kind of situation you can use them.
MT4 Order Types
If you are new forex trader just starting in forex and you are learning about the MT4 trading platform, you will most likely be asking the following questions:
- What is a buy limit order in MT4 And How Do You Use It in what type of condition?
- What is a buy stop order and how to use it to trade?
- What Is a sell limit order and where is it placed and how to use it?
- What Is a Sell Stop Order and how do you use it to trade?
- What Is a Market Order?
Well, if you are asking these questions and ended up here, it means only one thing: you are just starting out and learning about forex trading.
All these above are MT4 orders and each are used differently and in here you will get answers to such questions as these:
- What is the difference between buy stop order and a buy limit order?
- what is the difference between a sell stop order and sell limit order
- and you also get to know the types of trading setups that each of these mt4 order types can be applied to.
MT4 Order Types Can Be Daunting (For A Beginner).
I remember the first time I opened up my MT4 trading platform and did not know the Mt4 Order Types I was staring at on the screen.
I did not know what a market order was, let alone what a sell limit or sell stop order was or what a buy stop or buy limit order was.
It took a while for me to understand what the differences between the MT4 order types were and this was done by demo trading and playing around with the different order types… and if you are new forex trader, I’m sure you would do the same.
One of the biggest thumbs up for the Mt4 trading platform is that, it is so much easier that other trading platforms from what I’ve seen and if you decide to use the MT4 trading platform, you are making a good choice.
The order types in the MT4 trading platform come under only two main categories:
- pending orders
- market execution orders
Under pending orders, you have 4 specific orders:
- buy limit
- sell limit
- buy stop
- sell stop
Pending order are used to catch the price move. Pending orders are like traps…they wait for price to come to them and hit them before these pending orders get activated.
Buy limit and sell limit orders are referred to as “limit orders” whereas buy stop and sell stop orders are referred to as ” stop orders.”
2 Types of MT4 Market Execution Orders
Under market execution, you have 2 specific orders:
- Sell by Market Order
- Buy By Market Order
So when you press the “Sell by Market” or “Buy by Market” buttons as shown below, your order gets filled at whatever the market prices is at the moment:
2 Types Of MT4 Limit Orders
Now, that you’ve had an overview of each order types, lets dig in a bit more into MT4 Limit Orders. As mentioned, MT4 limit orders are pending orders:
- sell limit and
- buy limit orders
What Is A Sell Limit Order and How Does It Work?
A sell limit order is a pending order that is place above the current price of the market in the anticipation that price will head up to it, hit it and activate it and go back down.
A situation where you can use a sell limit order is when price is heading up to a resistance level and you think that once price hits that resistance level, it will fall back down. So you will have to place a pending sell limit order at the price level where you think the market will come and turn back down.
What Is A Buy Limit Order and How Does It Work?
Now, let me talk about a buy limit pending order: a buy limit order is a pending order that is placed below the currency market price in the anticipation that price will fall down, hit it, activate it and head back up.
Here’s an example of a buy limit order in action:
2 Types Of Mt4 Stop Orders
Mt4 stop order operate completely opposite to the limit orders. As mentioned above, there are only two types of mt4 stop orders:
- a sell stop order
- and a buy stop order
What Is A Sell Stop Order And How Does It Work?
Here’s the definition for a sell stop order: a sell stop order is a pending order that is placed below the market price in anticipation that the price will fall down, activate it and continue to fall down further.
An example of how and and where you can use a sell stop order is when you want to trade a breakout of a rising trendline or a support level. This would have been a good example of trading using a sell stop order:
What Is A Buy Stop Order And How Does It Work?
Here’s the definition for a Mt4 buy stop order: a buy stop order is a pending order that is placed above the market price in the anticipation that the price will rice up, hit it, activate it and then continue rising up.
Here’s an example of trading the breakout of a resistance level using a buy stop order will look like:
So there you have it, these are the types of forex orders in the MT4 trading platform. The mt4 trading platform is in fact one of the simplest and the most easiest for any new forex trader to get used when all things are considered, these are the only orders you’d have to use when you use the mt4 trading platform:
- sell limit order
- buy limit order
- sell stop order
- buy stop order
- sell by market order
- and buy by market order.
One you understand the difference of each order type, then it it makes it easy for you to choose which order type to use based on what type of trading strategy you are going to implement.
Don’t forget to like, tweet and share this post on MT4 order types.