Trading smart is like planning the perfect trip-you want the best route to get you where you need to go. On Deriv MT5, order types help you navigate the market efficiently. Whether you’re hopping on an instant ride with market orders or setting up a strategic plan with pending orders, knowing how they work can give you a real edge.

Market orders: The fast lane

A market order is like jumping on the next train-it gets you in the trade instantly at the best available price. The good part? Speed. The not-so-good part? You don’t get to pick the exact cost.

For example, let’s say you place a buy order for 1 lot of EUR/USD when the price is $1.1250. The price might have moved to $1.1252 by the time it executes. It’s quick, but the price can shift slightly.

Pending orders: The power move

Pending orders let you be more strategic. It’s like telling Deriv MT5, “I’ll trade, but only when the price is just right.”

Here’s a breakdown of the different types:

• Buy Limit/Sell Limit: You set a specific price at which you want to buy or sell. For example, “I’ll buy if the price drops to $50” or “I’ll sell if it hits $100.”
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• Buy Stop/Sell Stop: These are for traders who want to ride the trend. For example, you might “Buy if the price moves above $50” or “Sell if it dips below $100” because you expect the momentum to continue.
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• Buy Stop Limit/Sell Stop Limit: This combines stop and limit orders. Example: “Buy if the price reaches $50, but only if it drops to $48.” This lets you fine-tune both entry and price.

Order expiration: Setting a deadline

You don’t want pending orders hanging around forever, right? That’s why you can set expiration rules:

• Good ’til Cancelled (GTC): The order stays open until it’s filled or you cancel it.
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• Today: The order vanishes at the end of the trading day.
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• Specified: You pick a date and time for the order to expire.
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• Specified Day: The order expires at the end of the chosen day.

Managing risk: Your trading safety net

No one wants unnecessary losses, and that’s where stop-loss and take-profit orders step in.

• Take-Profit: Locks in your gains automatically. Say you buy EUR/USD at $1.1250 and set a take-profit at $1.1300-your trade closes at that price, banking your profit.‍
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• Stop-Loss: Acts as your emergency exit. If you buy EUR/USD at $1.1250 and set a stop-loss at $1.1200, your trade closes at that level, limiting potential losses.

Want to get hands-on? Test out these order types with a free demo account on Deriv MT5. It’s the best way to learn and find what works for you. Happy trading!