Pending order is placed for the opening of a position. With the aid of a pending order, the forex trader is able to buy and sell current pairs at a pre-defined price which is not yet the market price. This type of order is used to execute a trade if price reaches the pre-defined level; the order will not be filled if price does not reach this level. The Pending order is therefore a request for a currency *pair purchase once the pair gets to the market rate which is the value mentioned in the order.
Four kinds if pending orders exist.
Buy Limit:This is to buy when the ask price reaches to a predetermined level. In this kind of pending order, the market rate is higher than the value set in the order. These orders are set with the anticipation that the instrument price would fall to a certain value, then stop and start to increase again. So it becomes impossible to set buy limit orders on a value above the current ask price, you use the stop orders to set above. *
Buy stop: This is to buy when the ask price equals a specified value. In this situation, the current price level is below that on the set order. This type of order is set with the hopes that that the instrument price would climb above a certain level and continue to increase. You can't set buy stop orders below the current ask price, to do this; you need limit orders for this.
SELL LIMIT: This is used to sell when the bid price gets to the specified value. With the sell limit, the current price level is lower than that of the value in the set order. Basically, orders of this type are set with the expectation that the instrument price having climbed go a certain value, will stop its uptrend and then begin to fall in value. You can't set sell limit orders below the current bid price, to do this you use stop orders.
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Sell stop – This is used to sell once the bid price gets to a specified level. Here, the current price level is greater than the value of the set order. By convention, this kind of order is set with the hope that the instrument price which had been on the decline would fall further. You can't use set stop orders at a value higher than the current bid price, if you want to do this, you will have to use the sell limit orders for that.
Should you choose to set a pending order, click on the New Order window and then change the order type from Immediate Execution to Pending Order- to set a pending order.
Four kinds if pending orders exist.
Buy Limit:This is to buy when the ask price reaches to a predetermined level. In this kind of pending order, the market rate is higher than the value set in the order. These orders are set with the anticipation that the instrument price would fall to a certain value, then stop and start to increase again. So it becomes impossible to set buy limit orders on a value above the current ask price, you use the stop orders to set above. *
Buy stop: This is to buy when the ask price equals a specified value. In this situation, the current price level is below that on the set order. This type of order is set with the hopes that that the instrument price would climb above a certain level and continue to increase. You can't set buy stop orders below the current ask price, to do this; you need limit orders for this.
SELL LIMIT: This is used to sell when the bid price gets to the specified value. With the sell limit, the current price level is lower than that of the value in the set order. Basically, orders of this type are set with the expectation that the instrument price having climbed go a certain value, will stop its uptrend and then begin to fall in value. You can't set sell limit orders below the current bid price, to do this you use stop orders.
*
Sell stop – This is used to sell once the bid price gets to a specified level. Here, the current price level is greater than the value of the set order. By convention, this kind of order is set with the hope that the instrument price which had been on the decline would fall further. You can't use set stop orders at a value higher than the current bid price, if you want to do this, you will have to use the sell limit orders for that.
Should you choose to set a pending order, click on the New Order window and then change the order type from Immediate Execution to Pending Order- to set a pending order.
What are pending orders
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