Pending order

When trading Forex, you can't be constantly connected to your trading terminal. A favorable market entry opportunity can arise at any time. A pending order is used to open a position at this precise moment.

A pending order is an order to open a new position that will only be executed if certain conditions are met – the price reaches a certain level or the required time arrives.

This type of order is used in virtually all trading strategies, so it's worth exploring this issue in more detail.

Pending orders have the following characteristics:

Direction – buy or sell. A buy order isn't necessarily required during an uptrend. A trader can also place a sell order if they're confident the trend will reverse within a certain period.

Type – such orders can be of two types: stop and limit. A stop order requires a buy at a price in the direction of the trend. For example, when placing a buy stop , you must specify a price higher than the current price. Another type of limit order allows you to place an order using the opposite principle. For example, when placing a buy limit, you can specify a price lower than the current price.

Time – you can optionally limit the time by which the pending order must be executed. If the price doesn't reach the desired level within the specified period, the order is canceled.

Strategies using Pending order.

The most common trading strategy that typically uses pending orders is the " Level Breakout Strategy ." You first identify points at which the trend is certain to continue, then place a pending order and wait for it to be triggered.

Equally popular is the " Flat Strategy ," which is used when the market remains stable for a long time. Its main advantage is that a flat is always followed by a sharp price surge, so placing a pending order at the edge of a possible breakout guarantees a substantial profit.

You can also learn more about some trading options in the article " Pending Order Strategy ."

When using this type of order, remember to set stops, as you won't be able to control when the pending order is triggered, and a change in the market could wipe out your deposit.