What is the difference between market and limit orders?

Market Order:

• Executes immediately at the current market price.
• Use when you want to enter or exit a trade right now.
• Subject to slippage during fast market conditions.

Limit Order (Pending Order):

• Executes only when the price reaches a specified level.
• Buy Limit: Buy at a price lower than current (you expect price to dip before rising).
• Sell Limit: Sell at a price higher than current (you expect price to spike before falling).
• Buy Stop: Buy at a price higher than current (breakout strategy).
• Sell Stop: Sell at a price lower than current (breakout strategy).

How to place a pending order in MT5:

1. Right-click on the chart > Trading > New Order.
2. Change the order type from Market Execution to Pending Order.
3. Set the price, volume, and expiry (optional).
4. Click Place.