Order — the way you ask the terminal to open or close a position. The order type determines the price at which you enter, and whether you enter at all.
A beginner needs three types: the market order, the limit order and the stop order.
Market order — enter right now
A market order opens a position immediately, at the current available price.
- Pro: it is executed immediately, so entry is guaranteed.
- Con: the execution price is not known exactly in advance — in a fast market, it may differ from the one you saw.
We covered the difference between the expected and the actual price in the lesson on trade costs — that’s slippage. This is exactly why a market order placed during a news release may be filled noticeably worse than expected.
Stop order — enter after confirmation
Stop order — a pending order that is triggered when the price reaches a set level in the direction of the move: above the current price for a buy, below it for a sell.
It is used when you want to enter not in advance but after the price confirms the direction. Once triggered, a stop order becomes a market order, so the execution price may also differ from the one you set.
How they differ
| Order type | When it is executed | Entry price |
|---|---|---|
| Market | Immediately | Current; the exact value is not known in advance |
| Limit | When the price reaches the level | The price you set or better |
| Stop order | When the price reaches the level in the direction of the move | Close to the price you set; may deviate |
The general rule: a market order guarantees entry but not price. Pending orders give you the price but not a guaranteed entry — the price may never reach the level.
Limit order — enter at a set price
Limit order — a pending order to buy or sell at a price set in advance.
Unlike a regular trade, which opens at the current market price, a limit order waits for the price to reach the specified level.
How does it work?
For example, you received a signal:
XAUUSD — BUY
Entry: 3345
If the current price is above or below the specified level, a limit order may be used, depending on the entry type. You set the price at 3345, and the order waits for the price to get there.
Once the price reaches the set level, the order can be executed and become an open position.
Why use limit orders?
They let you set the entry point in advance, so you don’t have to watch the chart constantly and open a position manually at the right moment.
Limit orders are placed by the trading bot.
For example:
Entry: 3345
Current price: 3355
If you need to wait for a price of 3345 to enter, the position will not open until the price reaches that level.
A simple flow
1. Signal received
↓
2. The order waits for the Entry price
↓
3. The price reaches Entry → position opened
How a limit order works. A limit order waits for the Entry price specified in the signal. The position opens once that price is reached. If the price does not reach Entry, the position is not opened.
When to place an order and when to wait for the next signal
You don’t always need to enter a trade right away. It all depends on where the price is now relative to the entry point.
- The signal arrived in time — place an order with the parameters from the signal and wait for the price to reach the entry point.
- The price has already passed the entry point — don’t enter the trade. The signal counts as missed; wait for the next one.
The key point: if the price has already moved past the entry point, don’t try to “chase” it and open a trade at a different price.
Check yourself
Signal: XAUUSD — BUY, Entry 3345. The current price is 3352. You want to enter exactly at 3345 without watching the chart.
Which order will do this?
In short
- A market order guarantees entry but not price.
- A limit order waits for the set price; if the price doesn’t get there, there is no position.
- A stop order opens a position; a stop loss closes it.
- An order placed in time simply waits for the price; a missed signal is not chased.