The short answer
All four orders wait at a price you choose. The difference is where they sit and what you expect price to do:
| Order | Where you put it | What you expect | Memory trick |
|---|---|---|---|
| Buy limit | Below the price now | Price dips, then goes up | “Buy cheaper” |
| Sell limit | Above the price now | Price rises, then goes down | “Sell higher” |
| Buy stop | Above the price now | Price breaks up and keeps going up | “Buy the breakout” |
| Sell stop | Below the price now | Price breaks down and keeps going down | “Sell the breakdown” |
Limit = price comes back to you. Stop = price breaks through and keeps going.
In every picture below, gold is at $4,000 now. All prices are example prices, picked to keep the pictures simple.
Before the pictures: bid, ask and the chart
Gold always has two prices: the bid (where you sell) and the ask (where you buy), a little higher. The gap is the spread. Most MT5 charts show the bid.
MetaTrader 5’s own help says:
- buy limit and buy stop fill at the ask
- sell limit and sell stop fill at the bid
So a buy order can fill a few cents before the chart line “touches” your level, or not fill even though the chart touched it. Our bid and ask guide explains this, and why my pending order did not fill shows what it does to your orders.
Buy limit: buy cheaper
When to use it: you think gold will dip to a level, such as support, and then bounce.
Gold example: gold is at $4,000. You see support at $3,990. You place a buy limit at $3,990. If the ask falls to $3,990 (or lower), you buy at $3,990 or better.
If price never dips that far, you don’t buy. That’s fine. It means the price you wanted never came.
Sell limit: sell higher
When to use it: you think gold will rise to a level, such as resistance, and then drop.
Gold example: gold is at $4,000. You see resistance at $4,010. You place a sell limit at $4,010. If the bid rises to $4,010 (or higher), you sell at $4,010 or better.
Buy stop: buy the breakout
When to use it: you only want to buy if gold breaks above a level, because a break often means more buyers are coming in.
Gold example: gold is at $4,000 under resistance at $4,010. You place a buy stop at $4,010. If the ask reaches $4,010, MT5 sends a buy at the market. If gold then rises to $4,020 with 0.10 lot, that’s 0.10 × 100 oz × $10 = $100 of profit (example numbers).
Careful: a stop order becomes a market order when it triggers, so in a fast move it can fill worse than $4,010. That is slippage.
Sell stop: sell the breakdown
When to use it: you only want to sell if gold breaks below a level.
Gold example: gold is at $4,000 above support at $3,990. You place a sell stop at $3,990. If the bid falls to $3,990, MT5 sells at the market. It can also slip in a fast drop.
MT5 only: buy stop limit and sell stop limit
MetaTrader 5 adds two orders that MT4 doesn’t have. Each one is two steps.
Buy stop limit: breakout, then wait for the pullback
- You set a stop price above the market, for example $4,010.
- You set a limit price below that stop, for example $4,005.
- When the ask reaches $4,010, MT5 places a buy limit at $4,005.
- You only buy if price pulls back to $4,005.
Why use it: to buy a breakout without chasing the spike. The catch: if gold breaks out and never looks back, you don’t get in.
Sell stop limit: breakdown, then wait for the pullback
- Stop price below the market, for example $3,990.
- Limit price above that stop, for example $3,995.
- When the bid reaches $3,990, MT5 places a sell limit at $3,995.
- You only sell if price bounces back to $3,995.
Some other platforms use “stop limit” differently (the limit on the other side of the stop). Our deeper order types and execution lesson explains both versions, plus OCO and trailing stops.
Stop-losses and take-profits are the same orders
Once you are in a trade, your exits work like these orders:
| Your trade | Stop-loss works like | Take-profit works like |
|---|---|---|
| Buy | Sell stop (below) | Sell limit (above) |
| Sell | Buy stop (above) | Buy limit (below) |
That is why a sell trade’s stop-loss can be hit by the ask even when the chart (bid) didn’t touch it. See stop hit but price didn’t touch it.
The five most common mistakes
- Choosing “buy stop” when you meant “buy limit”. MT5 may reject a buy limit placed above the market, or a buy stop below it. If the platform won’t let you place it, re-read the table above.
- Forgetting the spread on sell limits and buy limits. Your buy limit needs the ask to come down to it, not the chart line.
- Placing the order too close to the price. Brokers set a minimum distance (the stops level). Too close and you get an “invalid stops” or “invalid price” error.
- Leaving old orders behind. A forgotten buy stop from last week can fill on a news spike. Set an expiry (Today or a set date).
- Wrong lot size. On gold, 1.00 lot is $100 per $1 move. Check the volume box every time, and size with the position size calculator.
How to place a pending order in MT5 (phone or PC)
- Open a New Order on XAUUSD.
- Change Type from Market Execution to Pending Order.
- Choose Buy Limit, Sell Limit, Buy Stop, Sell Stop (or the stop limit types).
- Enter the price (and the stop limit price for the two-step orders).
- Add your stop-loss and take-profit.
- Choose the expiration: Good till cancelled, Today, or a set date.
- Check everything, then Place.
Want to practise first? Use a demo account until you can place all four without looking at this page.
Sources
- MetaTrader 5 Help, Types of orders: buy limit and buy stop at the ask, sell limit and sell stop at the bid; buy stop limit and sell stop limit (read 5 November 2026)
- MetaTrader 5 Help, Opening positions / placing orders: pending-order expiration types (Good Till Canceled, Today, Specified); stop levels set by the broker in the contract specification (read 5 November 2026)
- All prices and the $100 example are example numbers, checked by script.
Educational content only, not financial advice. Trading gold with leverage carries a high risk of loss.
Frequently asked questions
What is the difference between a buy limit and a buy stop?
A buy limit sits below the current price: you want to buy cheaper, after a dip. A buy stop sits above the current price: you want to buy only if price breaks higher. Same direction (buy), opposite places.
What is the difference between a sell limit and a sell stop?
A sell limit sits above the current price: you want to sell higher, after a rise. A sell stop sits below the current price: you want to sell only if price breaks lower.
Is a stop-loss a sell stop?
On a buy trade, yes: the stop-loss works like a sell stop below the price. On a sell trade, the stop-loss works like a buy stop above the price.
What is a buy stop limit in MT5?
A two-step order. When the ask reaches your stop price above the market, MT5 places a buy limit at a lower price you chose. You only buy if price then pulls back to that limit. It is a breakout, then retest, entry.
Which pending order should a beginner use on gold?
None is better in general. Use a limit if your plan is to buy a dip or sell a rally at a level. Use a stop if your plan is to join a breakout. Always check the price, the side and the stop-loss before you press Place.
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