MT5 Order Types: Pending Orders, Stop Loss and Slippage

An MT5 order tells a broker what trade to attempt. A pending order waits for a price condition; Stop Loss and Take Profit are instructions attached to a position or pending order. Understanding the difference helps explain why an order can trigger, remain unfilled or close at an unexpected price.

Four pending orders, one EUR/USD example

Assume a hypothetical EUR/USD quote of Bid 1.08000 and Ask 1.08020. For ordinary OTC forex trading, buying uses Ask and selling uses Bid. The table shows four possible pending orders. These are examples of mechanics, not proposed trades.

A limit order specifies an acceptable price or better, but does not guarantee a fill. A stop order activates after its trigger condition is met. Order availability and execution depend on the instrument and broker settings.

MT5 also supports Stop Limit orders. For example, a Buy Stop Limit can place a Buy Limit after the higher stop price is reached. If the market never returns to the limit price, the resulting order may remain unfilled.

Why a stop can trigger without touching the chart

For these forex positions, MT5 checks a long position’s Stop Loss and Take Profit against Bid, and a short position’s levels against Ask. Suppose a short position has a Stop Loss at 1.08200. An Ask of 1.08200 can meet that condition while Bid is only 1.08180. A chart displaying Bid alone would not show the same touch. Check which price the chart displays before comparing it with an order.

A stop trigger is not a guaranteed exit price

When the relevant condition is met, the platform’s stop instruction initiates the closing operation. Available prices can change during a fast market or gap. The difference between an expected or requested price and the actual execution price is slippage; it can be favourable or unfavourable.

For example, assume a long EUR/USD position has a Stop Loss at 1.07800 but closes at 1.07770. That is three pips worse. At 20,000 EUR, the additional price loss is 20,000 × 0.00030 = USD 6, before other charges. A planned loss calculation is therefore an estimate, not a guaranteed ceiling.

Fixed stops and desktop trailing stops work differently

Accepted Stop Loss and Take Profit instructions are stored on the broker’s server. MT5 desktop Trailing Stop instead runs in the trading terminal and sends changes to the Stop Loss as its conditions are met.

If the terminal is closed, trailing adjustments stop. The last Stop Loss successfully placed on the server remains in effect. If the trailing condition has not yet placed a Stop Loss, enabling trailing alone does not mean an initial server-side stop exists.

Checks before submitting or changing an order

Review the order direction, volume, trigger price and expiry. Check the symbol’s permitted order types, minimum stop distance and volume step in its MT5 contract specifications. Confirm the server accepted the instruction and inspect its status. An “Invalid stops” message can indicate that the proposed levels do not meet the symbol’s rules.

Frequently asked questions

Does a pending order guarantee a position?

No. Its condition must be met and execution must be possible. Activation may fail, for example, if free margin is insufficient.

Will a fixed Stop Loss work after I close MT5?

An accepted server-side stop does not require the desktop terminal to remain open. Execution still follows the instrument’s trading conditions.

Are these rules identical for every MT5 instrument?

No. Exchange-traded instruments can use different trigger rules. Check the specific symbol and account rather than assuming every market behaves like OTC forex.

Related reading: understand the Bid–Ask spread or explore the DecodeFX Learn Hub.

Educational information only; this article is not personal investment advice.

Sources: MT5 order principles; MT5 trade execution; MT5 symbol specifications.

When you are ready to compare trading conditions, review DecodeFX trading accounts and the terms applicable to your location before deciding whether to proceed.