Using MT5 Order Types Effectively When Trading Funded Accounts
Trading with a funded account offers great opportunities to leverage capital and grow profits, but it also comes with strict risk management rules. To succeed, traders must master the tools and features of their trading platform. MetaTrader 5 (MT5), one of the most popular multi-asset platforms, provides a range of advanced order types that can help traders manage trades with precision.
This article explains the types of orders in MT5 and how to use them effectively when trading with a funded account, helping traders optimize execution, control risk, and improve overall performance.
What is a Funded Account?
A funded account is a trading account provided by proprietary trading firms (prop firms) or brokers that supplies capital to traders after they meet specific criteria or pass evaluations. Instead of risking their own capital, traders use the firm’s money and share profits based on performance.
Funded accounts come with strict rules regarding:
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Maximum drawdowns
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Daily loss limits
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Position sizing
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Trade duration
Adhering to these rules is essential to keep the account funded and continue trading. This makes it crucial to use every tool available to manage trades efficiently — including the types of orders in MT5.
Overview of Types of Orders in MT5
MT5 offers a variety of order types designed to accommodate different trading strategies and risk controls. The two main categories are:
1. Market Orders
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Buy (Market Buy): Instantly buys an asset at the current market price.
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Sell (Market Sell): Instantly sells an asset at the current market price.
Market orders are used when a trader wants to enter or exit a trade immediately, ensuring execution but without control over the exact price.
2. Pending Orders
Pending orders allow traders to set a specific price at which a trade will be executed later. MT5 offers six types:
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Buy Limit: Buy below the current price, anticipating a price increase after the dip.
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Sell Limit: Sell above the current price, expecting a price decline after a rise.
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Buy Stop: Buy above the current price, anticipating momentum continuation.
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Sell Stop: Sell below the current price, expecting a downward breakout.
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Buy Stop Limit: Combination of Buy Stop and Buy Limit, triggering a buy stop order that then places a buy limit order at a set price.
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Sell Stop Limit: Combination of Sell Stop and Sell Limit, triggering a sell stop order that then places a sell limit order at a set price.
Why Knowing MT5 Order Types Matters for Funded Account Traders
Trading funded accounts requires strict discipline to meet risk limits. Proper use of MT5 order types can help traders:
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Enter and exit trades precisely without emotion
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Control risk with stop-loss and take-profit orders
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Automate trade execution for better timing
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Avoid slippage and unfavorable fills during volatile markets
Using Market Orders Effectively with Funded Accounts
Instant Execution with Market Orders
Market orders allow quick entry and exit — essential for reacting to fast-moving opportunities. However, funded accounts often have strict risk controls requiring careful timing.
Best practices:
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Use market orders when you’re confident about immediate price movement.
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Combine with stop-loss and take-profit orders immediately to limit risk.
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Avoid market orders during highly volatile news releases to prevent slippage.
Leveraging Pending Orders to Control Trade Entries
Pending orders are invaluable for funded traders aiming to:
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Enter trades at ideal price points without constant monitoring
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Avoid impulsive decisions by predefining entry conditions
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Manage risk by controlling entry price and timing
For example, a Buy Limit order lets you wait for a pullback before entering a long trade at a better price, aligning with funded account rules to limit drawdowns.
Stop-Loss and Take-Profit Orders: Essential Risk Management Tools
MT5 allows attaching stop-loss (SL) and take-profit (TP) orders to any market or pending order. For funded accounts, using these is often mandatory.
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Stop-loss: Automatically closes a trade to limit losses when price moves unfavorably.
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Take-profit: Closes a trade once a target profit level is reached.
Using SL and TP helps keep drawdowns within allowed limits and locks in profits without emotional interference.
Advanced Use of Stop Limit Orders for Precise Control
Buy Stop Limit and Sell Stop Limit orders combine the features of stop and limit orders, offering traders more refined control over trade execution. They help avoid unfavorable fills in fast markets by triggering limit orders only after price reaches a stop level.
Funded account traders can use these order types to:
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Set strategic entry points beyond breakouts
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Minimize slippage risk during volatile sessions
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Align entries precisely with their trading plans
Tips for Trading Funded Accounts Using MT5 Order Types
1. Always Set Stop Loss and Take Profit
Never leave a trade open without predefined SL and TP levels. This protects your funded account from unexpected large losses and ensures profit-taking.
2. Use Pending Orders to Stick to Your Strategy
Plan your trade entries with pending orders instead of chasing the market. This prevents emotional decisions and helps stay within risk parameters.
3. Practice in Demo Mode
Test how different MT5 order types work in various market conditions using a demo account before risking a funded account.
4. Monitor and Adjust Orders as Needed
Markets change — regularly review and adjust pending orders, SL, and TP to reflect current market conditions while respecting your funded account’s rules.
Conclusion
Mastering the types of orders in MT5 is critical for traders managing funded accounts. Effective use of market and pending orders, combined with strategic stop-loss and take-profit placements, can significantly enhance trade execution, risk control, and profitability.
Funded accounts demand discipline and precision, and MT5’s advanced order types provide traders with the necessary tools to meet these challenges. Whether you’re entering trades, protecting capital, or locking in profits, understanding and leveraging MT5 order types can help you trade smarter and sustain long-term success with your funded account.
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