Forex order types explained: market, limit and stop orders, OCO and IFD on MT4 and MT5

Conclusion: forex orders fall into three groups - market, pending and closing

Sorting orders into these three groups keeps things simple. First decide whether you want to enter now, wait for a price, or set an exit.

Note - what is a pending order: a pending order executes a trade when the price or a condition is reached. The MetaQuotes official help calls it a "pending order". Some brokers call it a reservation order.

• A market order buys or sells right away at the current price
• Limit and stop orders are pending orders that act when the price you set is reached
• Stop loss (SL) and take profit (TP) close a position you already hold
• MT5 has 6 pending order types. MT4 is generally described as having 4, without the stop limit types
• MT4 and MT5 have no orders named OCO or IFD, but the way you attach SL and TP can create similar behavior

Forex order types at a glance: market, limit, stop, SL and TP

First, the names and meanings of each order. The list follows the classification in the official MT4/MT5 help (MetaQuotes official help, checked on 21 October 2026).

SL and TP can be attached to a position or to a pending order. When attached to a pending order, the resulting position inherits the SL and TP after execution.

SL and TP are stored and executed on the broker's server. According to the official help, they keep working even when the trading platform is closed.

Note: a market order generally fills at the ask (the seller's quoted price) for a buy and at the bid (the buyer's quoted price) for a sell. The execution method differs by broker and instrument.

• Market order: buys or sells right away at the current price. Use it when you want a position now
• Limit: waits at a price more favorable than the current price. Use it to enter when the price pulls back
• Stop: waits at a price on the less favorable side of the current price. Use it to enter once the price breaks through a level
• Stop limit (MT5 only): when the stop price is reached, a limit order you specified is placed. Use it to set a condition on the fill price after the trigger
• Stop loss (SL): closes the position when the price reaches a level on the losing side. Use it to cap losses in advance
• Take profit (TP): closes the position when the price reaches a level on the winning side. Use it to lock in profit at a set price

Limit vs stop orders: the placement of the price decides

Key point - how to tell them apart is whether the price is more or less favorable than the current price. For a buy, a price below the current price is a limit order and a price above is a stop order. For a sell it is the reverse: above the current price is a limit order and below is a stop order.

Fills also work differently. A limit order fills at the specified price or a better one, but a fill is not guaranteed even if the price reaches it.

A stop order is executed at market once the price is reached. It fills more easily, but the fill price may differ from the one you specified.

Note - the stop limit is MT5 only: MT5 has Buy Stop Limit and Sell Stop Limit. When the stop price is reached, a limit order at a separately set price is placed. These two types are generally described as not available on MT4.

The list below shows where each pending order sits (MetaQuotes official help, checked on 21 October 2026). The scenario describes how the official help presents each order, and it is not a recommendation to trade.

• Buy Limit: below the current price; for a rise after a dip
• Sell Limit: above the current price; for a fall after a rally
• Buy Stop: above the current price; for a continued rise after a breakout
• Sell Stop: below the current price; for a continued fall after a breakdown

How to recreate OCO, IFD and IFO on MT4 and MT5

OCO, IFD and IFO are names used on domestic (Japan-registered) forex trading tools. MT4 and MT5 have no orders with these names.

However, changing how you attach SL and TP creates similar behavior. The list below shows the mapping (this site's own summary).

For example, place a buy limit pending order with both SL and TP attached. When the price reaches it and the order fills, the position inherits the SL and TP. This is close to an IFO.

Note: this only means the behavior is similar. The order mechanics differ by trading tool, and operation and display differ from the screens of domestic tools.

See the beginner guide on this site that explains the differences between MT4 and MT5 and how to choose between them.

• OCO (exit side): a take profit and a stop loss are placed together, and when one is hit the position closes. On MT4/MT5, attach both SL and TP to a market order
• IFD: when the entry order fills, the exit order becomes active. On MT4/MT5, attach either SL or TP to a pending order
• IFO: an IFD whose exit side is an OCO. On MT4/MT5, attach both SL and TP to a pending order

Placing orders on MT5: from the New Order window

This is the order flow based on the MT5 official help. On MT4 you can generally place orders from a New Order window in a similar flow. Details of the screen may differ by version and broker.

Note - the minimum distance differs by instrument: pending orders and SL/TP have a minimum distance from the current price that you can place them (the stop level). The value differs by broker and instrument, so check it in the instrument specification in your trading platform.

• Step 1: Open the New Order window. Right-click the instrument in Market Watch and choose New Order. You can also open it with the F9 key or from the Tools menu
• Step 2: Choose the instrument and lot size. Enter the instrument and the volume (lots). The minimum lot and step differ by broker and instrument, so check the instrument specification
• Step 3: Choose the order type. Pick a market order to enter now, or a pending order type to wait for a price. For pending orders, choose from limit, stop and stop limit
• Step 4: For a pending order, enter the price. Enter the price at which you want it to fill. For a stop limit, also enter the limit price. You can also choose an expiry
• Step 5: Enter SL and TP. Enter the closing prices. According to the official help, you can also specify them as a distance from the current price in points, not only as prices
• Step 6: Check the details and place the order. Review the instrument, direction, lots, price and SL/TP once more. Mixing up the trade direction is a common beginner mistake

Slippage and gaps: when orders do not fill as placed

An order does not always fill at the price shown on screen. As a general rule, prices can slip in the situations listed below.

An SL is not a promise to close at that exact price. If the price jumps, the position is closed at the first price available afterward.

Note: fill tendencies change by broker and time of day. You cannot judge a specific broker's execution quality from this list.

See the column on this site on prohibited trading and trading restrictions at each offshore broker.

• Market order: the fill price can differ from the price when you pressed the button (slippage). It slips more easily when the market moves fast
• Economic data releases: the price moves suddenly and quotes jump. Even an SL price may not fill
• Weekend gap: the open after a weekend can be far from the previous close. A position may close past the price where you placed the SL

Sizing the stop loss from your acceptable loss, and a pre-order checklist

There is no correct answer to how many pips an SL should be. The first thing to decide is the amount you can afford to lose on one trade.

Step 1: decide the acceptable loss. Choose an amount of your account funds that you could lose on one trade without affecting your daily life.

Step 2: work out the value of 1 pip from the lot size. The instrument and lot size set the profit or loss per pip. See the calculation guide linked below.

Step 3: divide the loss by that value to get the SL width. Dividing the acceptable loss by the value of 1 pip gives the maximum width you can place.

Worked example (hypothetical numbers, not a trade recommendation): acceptable loss 2,000 yen (hypothetical); instrument and lot USD/JPY, 0.1 lot (10,000 units); value of 1 pip about 100 yen; maximum width 2,000 yen / 100 yen = 20 pips. Spread, slippage and gaps are not included, so the actual loss may be larger than calculated.

The price you get also depends on the spread (the difference between the buy and sell price). Check trading costs separately from the order type. See the guides on this site covering pips, lots and required margin, the mechanics of leverage and stop-out, spread and trading commissions, and the broker comparison list.

• Does the trade direction match the position relative to the current price?
• Have you mixed up a limit order and a stop order?
• Is the lot size within the range worked back from your acceptable loss?
• Do the SL and TP prices meet the minimum distance?
• Does the pending order's expiry cover the period you intend?
• Do you know when spreads widen, and how fills behave around data releases?

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