A pending Order is a type of order that is placed to be executed automatically once specific market conditions are met. This allows you to set entry or exit points in advance, without having to monitor the market constantly.
Types of Pending Orders:
• Buy Limit: A Buy Limit order is placed at a price lower than the current Ask price. It will be triggered when the price falls to or below your set level, allowing you to buy at a better price.
• Sell Limit: A Sell Limit order is placed at a price higher than the current Bid price. It will be triggered when the price rises to or above your set level, allowing you to sell at a higher price.
• Buy Stop: A Buy Stop order is placed above the current Ask price. It will be triggered when the market price rises to your set level, allowing you to buy once the price goes higher.
• Sell Stop: A Sell Stop order is placed below the current Bid price. It will be triggered when the market price falls to your set level, allowing you to sell once the price goes lower.
• Buy Stop Limit: This order combines the features of a Buy Stop and Buy Limit. It requires two price levels to be reached: first the Buy Stop level, then the Buy Limit level, before execution occurs.
• Sell Stop Limit: Similar to the Buy Stop Limit, this order combines a Sell Stop and Sell Limit. It requires two price levels to be met: first the Sell Stop level, then the Sell Limit level, before execution occurs.