Every trade starts with an order, and the type of order you choose decides how and when it can be filled. Beginners often treat the order ticket as a single “buy” or “sell” button, but most platforms offer several forex order types, each with different behaviour. This guide explains the common types in plain terms, shows how to read an order ticket, and lists the checks to make before you send anything.
This article is educational information, not financial, investment or legal advice. It draws on official and provider documentation rather than personal trading results. No broker or strategy is endorsed. Disclosure: forexbrokers.net may earn a commission if you open an account through some links on this site; that does not change what we explain here. Forex trading can cause substantial losses.
Orders, deals and positions
Before looking at individual forex order types, it helps to separate three words that are often used loosely. The MetaTrader 5 trading principles guide distinguishes orders, deals and positions. An order is your instruction. A deal is what happens when an order is executed. A position is what you hold afterwards.
That distinction matters because an order is not a trade until it is executed. A pending order can sit on the platform without ever becoming a position. Reading your platform’s terms with this in mind makes the rest of the order ticket easier to follow.
Market orders
A market order is an instruction to buy or sell at the price available when the platform processes it. It is the simplest of the forex order types and the one most beginners use first.
How a market order relates to bid and ask
OANDA’s bid-and-ask help page explains that you buy at the ask and sell at the bid. So a market buy order refers to the ask side, and a market sell order refers to the bid side. Knowing which side applies helps you read the price shown in the order ticket.
What to check before sending one
The price on screen when you click may not be the exact price you receive. Your provider’s execution policy explains how it handles this. Read that policy, and read the confirmation after each order, so you can compare the price you saw with the price you received.
Pending orders
A pending order is an instruction to act only if a condition is met, usually a price. It waits on the platform until that condition occurs, until you cancel it, or until it expires under the platform’s rules. Platforms use different names for pending orders, so treat the descriptions below as orientation and confirm each one in your platform’s help pages.
Limit orders
A limit order is generally used to buy at a stated price or lower, or to sell at a stated price or higher. Because it waits for a more favourable price than the current one, it may never be filled if the market does not reach that level.
Stop orders
A stop order is generally used to buy once the price rises to a stated level, or to sell once it falls to a stated level. Traders often use stop orders to limit losses on an open position. A stop instruction tells the platform when to act; your provider’s terms explain how the resulting order is executed.
Stop-limit and other variants
Some platforms combine conditions, for example a stop-limit order that becomes a limit order once a stop level is reached. Others add expiry settings or link orders together. Names and behaviour vary, so read the definitions for your platform before using anything beyond a basic order.
Attaching orders to a position
Many order tickets let you attach exit instructions when you open a position. These are commonly labelled stop-loss and take-profit. A stop-loss sets a level at which the platform should act to close a position that has moved against you. A take-profit sets a level at which it should close a position that has moved in your favour.
These instructions are tools for planning, not guarantees. Read how your provider executes them, what happens if prices move quickly past your level, and whether any guaranteed option exists on your account and at what cost. The account terms are the document that settles these questions.
How to read an order ticket
An order ticket usually brings several decisions together on one screen. Working through it in the same order each time reduces mistakes.
- Instrument. Confirm the pair, including which currency is the base and which is the quote.
- Direction. Confirm whether you are buying or selling.
- Order type. Choose market or a pending type, and check its definition on your platform.
- Quantity. Check whether the field uses lots or units.
- Price level. For pending orders, enter the trigger level and check it against the current bid and ask.
- Exit instructions. Add or review any stop-loss and take-profit levels.
- Expiry. Check how long a pending order will remain active.
Practising forex order types safely
You can learn how order types behave before risking money. Open the order ticket, fill it in, and stop before sending. Change the order type and watch which fields appear or disappear. Then read the platform’s help page for each type you saw.
If your provider offers a practice environment, use it to send each order type and read the confirmation that follows. Note the order status, the price at which any deal was executed, and the resulting position. Treat this as a reading exercise. A practice environment may not reflect live conditions exactly, so it does not predict results.
Keep an order log
For each practice order, write down the type, the trigger level, the time, the status and the final result. Over time, the log shows you which instructions you understand well and which you still need to check. It also gives you precise questions to ask the provider.
Common order mistakes
- Choosing the wrong type. A limit and a stop at the same level behave differently.
- Placing a pending order on the wrong side of the price. Check the trigger against the current bid and ask.
- Forgetting about open pending orders. Review the list of working orders regularly.
- Assuming exit orders are guaranteed. Read how your provider executes them.
- Misreading the quantity field. Confirm lots or units before sending.
Questions to ask a provider about orders
A provider’s documentation should answer a few practical questions. Which order types does the platform offer? How does it execute each type? What happens to pending orders over the weekend or during trading breaks? Can stop-loss orders be guaranteed, and if so at what cost? Where can you see the history of every order you placed?
The CFTC’s advisory on eight things to know before trading forex reminds customers that a dealer controls its trading platform, including the prices you see. Clear answers to these questions, in writing, help you understand what the platform will do with your instructions.
Where order types fit in choosing a provider
Order handling is part of any provider comparison, alongside costs and safety. Record which order types each platform offers and how its terms describe execution. Our fees and accounts guides show how to keep that record, and our guide on how to read forex quotes explains the bid and ask prices that orders refer to.
Before opening any account, check that the provider is legitimate. In the US, the NFA’s BASIC database holds registration information for retail forex firms. Our broker safety guides explain how to match a provider to an official record.
FAQ
What is the difference between a limit order and a stop order?
Generally, a limit order waits for a more favourable price, while a stop order acts once the price moves to a less favourable level. Check your platform’s definitions.
Is a stop-loss guaranteed?
Not unless your provider offers a guaranteed version and your account uses it. Read the execution terms.
Can a pending order expire?
Yes, depending on the expiry setting and the platform’s rules. Check the expiry field before sending.
Risk warning: Forex and CFD trading uses leverage and can result in substantial losses. Past performance does not indicate future results. Nothing here is a recommendation to buy or sell any currency. If the implications are unclear, seek independent qualified advice.
