Question: What is "Sell Stop" order on MT4 and MT5 trading platforms? How does it work?
“Sell Stop Order” is a trade order to sell at the “Bid” price equal to or less than the one specified in the order.
When you make this order, the current price level needs to be higher than the value in the order.
MetaQuotes provides very useful “help” page with the below photo on MT5 trading platform.
For the example of “Sell Stop Order”, please refer to the chart at the left-down side of the below photo.
The red point indicates the current market price, and the blue point indicates the price which you like to order a “Sell position” in the future when the market price reaches to that level.
As you can see, normally this order is placed in anticipation of that the security price will reach a certain level and will keep on falling.
Pending order is automatic
As long as your pending order is still active, your account will try to execute the order at the specified market price even when the trading account is disconnected or the platform is closed.
This is because the trading servers of MetaTrader5 register the “Pending Orders” in the server, but not only on the platform.
“Pending Orders” can be cancelled, only when you cancel it manually or when there is no enough available margin in the trading account to execute that order.
In the page below, you can find the list of MT4 and MT5 online brokers.
