#pendingorders

What are Pending Orders?

There are many ways to trade Forex without good or bad; For each trader's style and personality, there is a more comfortable trading method. While market orders are the main type of orders traded, bought, and sold, another type is called a pending order. Here are some of the things to know about pending order trading. Orders are the lifeblood of the foreign exchange market and the main mechanism by which transactions are carried out. Traders use a variety of pending orders to buy and sell currencies, and we've outlined the four most common that you should know about as a new Forex trader.

Types of Pending Orders.

Sell Limit

A sell order at a price higher than the current market price. The sell limit should be used when you want to sell a currency pair (open a short position) at a level above the current price. For example, GBP / USD is currently trading at 1.4531 and you think that if the currency pair hits 1.4700 it will surely lower later. If you want your broker to go short at 1.4700, you must use a pending sell limit order. As with a buy limit order, you can use a sell limit order to enter a trade at a price lower than current market offers.

Buy Limit

Buy pending orders with a limit. A pending limit buys order is the type that allows you to place a trade at or below the specified price. To ensure that the order improves the price, limit orders are placed on the right side of the market. This is when you can buy at a price lower than what is currently being traded. If you are fairly certain that the price has gone down and will go up, the buy limit may be a good option.

Sell Stop

Stop Sell - A standing order to sell a security when the price falls below the current demand point. You can place this order just below a significant support level based on the technical theory that if what happened in the past at that price to buy the stock no longer exists, it sets them up for a rundown. You want to exit the position or even take a short position to take advantage of price drops.

Buy Stop

Buy stop orders are used when you are fairly certain that the current price will increase and even exceed a certain level. When you place a purchase order above the current market value, it is called a pending Buy order. When your defined price level, the highest level, is reached, the order is automatically activated. You do not have to do anything else. Unlike the limit order, the buy stop order is set above the market price. Orders are immediately converted to orders once the level is reached Read More...