What Is the Difference Between a Market Order and a Pending Order in MT5?

• Market Order:

  • Definition: An order to buy or sell instantly at the current market price.
  • Use Case: Suitable for traders who want immediate execution based on current market conditions.
  • Example: A trader places a buy order for EUR/USD at the current price of 1.0850, and it is executed immediately.

• Pending Order:

  • Definition: An order to buy or sell at a specific price level in the future.
  • Use Case: Ideal for traders who want to enter the market when a certain price is reached.
  • Types: Includes Buy Limit, Sell Limit, Buy Stop, Sell Stop, Buy Stop Limit, and Sell Stop Limit.
  • Example: A trader places a Buy Limit order for EUR/USD at 1.0800, meaning the trade will execute only when the price falls to this level.

Key Differences:

• Timing: Market orders are executed immediately, while pending orders wait until a specific price is reached.
• Control: Pending orders provide more control over the entry price, while market orders focus on immediate action.