In the competitive world of proprietary trading, precision, discipline, and deep platform knowledge are what separate funded traders from those who fall short. One of the most crucial skills any funded trader must master is understanding the types of orders in MT5 (MetaTrader 5). When trading with the best prop firm in the UK, knowledge of how and when to use various order types is not just helpful—it’s essential.
This article explains why mastering order types in MT5 is key to trading success and how UK prop firms incorporate this knowledge into their funded trader programs.
Understanding the Types of Orders in MT5
MetaTrader 5 (MT5) supports a comprehensive set of order types, giving traders the flexibility to implement a wide range of strategies across different market conditions. The platform’s design allows for precise order execution, which is critical when trading with strict risk limits under a prop firm structure.
1. Market Orders
A market order is executed immediately at the current market price.
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Use Case: Fast entries during volatile conditions or news releases.
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Relevance for Prop Traders: Instant execution helps capitalize on momentum trades, often required during intraday setups in prop firm challenges.
2. Pending Orders
These orders are executed at a later time when a specific price condition is met. MT5 offers four types:
a. Buy Limit
Placed below the current price. Used when expecting a pullback before a rise.
b. Sell Limit
Placed above the current price. Used when expecting a rise before a drop.
c. Buy Stop
Placed above the current price. Used to enter when price breaks resistance.
d. Sell Stop
Placed below the current price. Used to catch breakdowns below support.
3. Stop-Loss and Take-Profit Orders
These risk management tools are attached to market or pending orders.
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Stop-Loss (SL): Closes a losing trade at a predefined level.
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Take-Profit (TP): Locks in profits when a price target is hit.
4. Trailing Stop
An advanced stop-loss that adjusts as the price moves in your favor, helping to lock in profits while allowing trades to run.
Why Order Types Matter at the Best Prop Firms in the UK
Top UK prop firms, such as FTMO UK, The5ers, and Audacity Capital, fund traders who can consistently execute trades with precision while adhering to strict risk parameters. These firms expect traders to understand and apply order types strategically.
Benefits of Mastering MT5 Order Types in a Prop Firm Environment:
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Better trade timing and entry accuracy
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Improved risk management and compliance
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Reduced emotional decision-making
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Higher pass rates in evaluation phases
1. Prop Firms Demand Precision in Order Execution
The best prop firm in the UK will expect you to trade as a professional. This includes using limit and stop orders to enter at optimal levels rather than chasing price with market orders.
Example:
Using a Buy Limit to enter after a pullback to support is more strategic (and safer) than reacting emotionally with a late market order—especially when your prop account has strict drawdown limits.
2. MT5 Order Types Help Enforce Strict Risk Management
Prop firms typically impose:
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Daily loss limits (e.g., 5%)
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Max overall drawdown (e.g., 10%)
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Mandatory stop-loss requirements
MT5’s Stop-Loss and Take-Profit features help traders stay within these limits automatically, protecting both the trader and the firm’s capital.
Additionally, Trailing Stops allow traders to adjust dynamically, locking in profits while respecting the firm’s risk rules.
3. Strategic Use of Pending Orders Builds Trading Discipline
Top prop firms value pre-planned trades over impulsive decisions. Pending orders, like Buy Stops or Sell Limits, let traders:
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Set entries in advance
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Avoid overtrading
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Plan setups with favorable risk/reward ratios
This strategic approach demonstrates professionalism—something that UK prop firms look for when scaling traders to higher funding levels.
4. Performance Reviews Depend on Execution Quality
Prop firms track everything: how you enter a trade, how long you hold it, and how you manage risk.
MT5 keeps a detailed order history, allowing both you and the prop firm to analyze your performance by order type. Using smart order placement increases your chances of:
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Receiving better feedback
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Getting scaled to higher capital
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Unlocking higher profit-sharing tiers (often up to 90%)
5. MT5 Integration with Prop Firm Dashboards
Many UK prop firms integrate MT5 with their proprietary dashboards or risk engines. These tools automatically:
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Detect if SL/TP was used
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Monitor whether stop orders were placed in risky market conditions
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Evaluate trade timing vs. market conditions
In this environment, knowing how to correctly use MT5’s order types isn’t optional—it’s required for long-term success and account retention.
Final Thoughts: Execution Mastery Starts with Order Types
Whether you’re trading breakouts, reversals, or swing setups, success in a UK-based prop firm starts with mastering the types of orders in MT5. The platform provides every tool a serious trader needs, but it’s your understanding and execution that turn potential into profit.
By mastering market, pending, stop-loss, and trailing orders, you position yourself not just to pass prop firm challenges—but to thrive as a consistently funded trader in one of the world’s most competitive financial markets.
