In the world of proprietary trading, discipline and execution precision are key traits that separate profitable traders from average ones. The best prop firm in the UK understands this well and equips traders with advanced tools and training—one of the most critical being mastery of the types of orders in MT5. MetaTrader 5 (MT5) is a preferred platform among UK prop firms due to its robust trading functionalities and flexibility in order execution.
In this article, we’ll explore how the top UK prop firms use MT5’s order types to instill trading discipline and improve consistency across their trader base.
What Are the Types of Orders in MT5?
MT5 (MetaTrader 5) offers a variety of order types designed to meet different trading strategies and risk management preferences. Understanding these is essential for any funded trader working under a prop firm.
1. Market Orders
A market order is used to buy or sell an asset immediately at the current market price.
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Purpose: Fast execution when entering or exiting trades quickly is crucial.
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Use by Prop Firms: UK prop firms train traders to use market orders in high-volatility scenarios or when news-based setups require rapid action.
2. Pending Orders
Pending orders are placed in advance and get triggered only when the price reaches a specific level. MT5 offers four types:
a. Buy Limit
Placed below the current market price, anticipating a reversal after a dip.
b. Sell Limit
Placed above the current market price, expecting a pullback before the price drops.
c. Buy Stop
Placed above the current market price, used in breakout strategies.
d. Sell Stop
Placed below the current market price, also for breakout scenarios but in a bearish direction.
3. Stop-Loss and Take-Profit Orders
These are risk management tools linked to open orders.
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Stop-Loss (SL): Closes a trade at a predefined loss.
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Take-Profit (TP): Closes a trade when the profit target is met.
4. Trailing Stop
A dynamic stop-loss that moves with the market price, helping traders lock in profits while reducing exposure.
Why Order Types Matter to UK Prop Firms
The best prop firms in the UK don’t just hand over capital—they build professional traders. A core component of their training involves teaching when and how to use different MT5 order types based on:
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Market conditions
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Trading timeframes
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Risk-to-reward strategies
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Psychological control
By using the right order types, traders can improve timing, reduce emotional decisions, and comply with firm-set risk parameters.
1. Reinforcing Risk Management through SL/TP and Pending Orders
UK prop firms emphasize strong risk management. Using Stop-Loss and Take-Profit orders in MT5 ensures traders do not exceed the firm’s drawdown limits.
How Firms Implement This:
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Traders are required to place SL/TP on every position.
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Evaluation accounts may get disqualified for not using risk controls.
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MT5’s built-in tools allow prop firms to audit order history for risk compliance.
Pending orders like Buy/Sell Limits also help traders stick to pre-planned setups, avoiding impulsive entries.
2. Training for Strategy Execution with Different Order Types
Each order type in MT5 supports a specific trading strategy. Prop firms train traders to identify the best tool for each scenario.
Examples:
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Swing Traders use limit orders to catch reversals at support/resistance zones.
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Breakout Traders use stop orders to enter trades as momentum builds.
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Scalpers use market orders for quick entries with tight spreads.
UK prop firms offer simulation environments and coaching sessions using MT5 to help traders practice with real-time data and refine execution.
3. Promoting Emotional Discipline with Automated Orders
By encouraging the use of pending orders, trailing stops, and pre-set SL/TP, UK prop firms help traders avoid emotional trading.
Benefits:
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Traders avoid chasing price movements.
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Automated exits prevent overtrading or revenge trading.
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SL/TP placement reinforces realistic goal setting.
Discipline is critical in prop trading, where the ability to manage other people’s capital professionally determines your career longevity.
4. Tracking and Reviewing Performance Using MT5 Order History
MT5 stores detailed data on each order placed, including order type, size, timing, SL/TP, and outcome.
How UK Prop Firms Use This:
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Weekly performance reviews based on order execution logs.
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Identifying patterns in poor performance (e.g., excessive use of market orders in ranging markets).
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Custom dashboards that track risk/reward consistency and trade expectancy.
This data-driven feedback helps traders refine both their strategies and their decision-making process.
5. Aligning Order Use with Prop Firm Rules
Most top UK prop firms set specific trading rules such as:
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Maximum daily loss
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Minimum holding time
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Maximum lot size per trade
Traders are trained to align their order types in MT5 with these rules. For example:
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Limit orders can help meet minimum hold times.
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Stop orders can be used to avoid entering trades during high volatility unless confirmed.
This alignment ensures long-term compliance and helps traders scale up to larger funded accounts.
Final Thoughts: MT5 + Prop Firm = Trader Discipline
Success in proprietary trading requires more than intuition or luck. It demands a structured approach to execution, discipline in risk-taking, and precision in market entry—all of which can be mastered through understanding the types of orders in MT5. The best prop firm in the UK acts as a partner in this journey, equipping traders with training, capital, and the tools needed to trade like professionals.
By mastering MT5’s full range of order types, traders not only improve their win rate but also build habits that lead to long-term success in the competitive world of funded trading.
