Platforms
Forex order types explained
The order type you choose decides when and at what price your trade is filled. Using the right one can limit slippage and enforce your risk plan.
Guide · 6 min read Updated 3 Nov 2026 Reviewed by the research desk
Order
What it does
Use it when
Market
Buys or sells now at the best available price
You want in or out immediately
Buy limit
Buys at or below a set price
You expect a dip before a rise
Sell limit
Sells at or above a set price
You expect a rise before a fall
Buy stop
Buys once price rises to a set level
You want to join a breakout upward
Sell stop
Sells once price falls to a set level
You want to join a breakout downward
Stop-limit
Becomes a limit order once the stop price is hit
You want a breakout entry with a worst-price cap (MT5 and some platforms)
Stop-loss
Closes a position at a set loss level
On every trade
Take-profit
Closes a position at a set profit level
You have a defined target
Trailing stop
A stop-loss that follows price by a set distance
You want to lock in gains as a trade moves your way
Worked example
EUR/USD trades at 1.1000. You think it will break above 1.1050 and keep rising. You place a buy stop at 1.1055, a stop-loss at 1.1025 (30 pips below entry) and a take-profit at 1.1115 (60 pips above). If price never reaches 1.1055, no trade opens.
Slippage and guarantees
Stop orders become market orders when triggered, so in fast markets or over a weekend gap they can fill at a worse price than set. A limit order will not fill at a worse price, but it may not fill at all. Some brokers offer guaranteed stop-losses for a fee.
Check with your broker
✓Which order types are available on your platform and account.
✓The minimum distance between the current price and a pending order.
✓Whether trailing stops run on the server or only while your platform is open.
✓Whether guaranteed stops are offered and what they cost.
Related: why stop and market orders can fill at a different price is covered in our guide to slippage.
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Written by the Forex Awards research desk
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