A Stop Order is a type of Pending Order set in the profitable direction of an order; it allows a trader to test if the trend of the market is profitable.
There are many types of Stop Orders:
- Buy Stop: to buy at a price higher than the current ask price.
- Sell Stop: to sell at a price lower than the current bid price.
- Stop Loss: to close a falling trading position at a set price.
How to place a Stop Order
- Log into MT4/MT5.
- Open a new order by double-clicking your chosen instrument.
- Change Order Type to Pending Order.
- Then select Buy Stop or Sell Stop from the revealed area under Type.
- Set the requested price, ensuring it stays within valid parameters in case of an invalid SL/TP message then click Set.
- A message will confirm that your Stop Order is now set.
- Next, double-click the order located in the Trade tab, to open up the order’s settings, and set the Stop Loss price then click Modify to confirm.
- Congratulations, you’ve set up your order with a Stop Order, including Stop Loss.
If you ever want to edit your Stop Orders, including Stop Loss, simply double-click the order in the Trade tab to open up customisation options.
Note that if you choose an expiry date that falls during a weekend, your order will expire before the market closes at the end of the current week.