Pending order: refers to an order to buy or sell at a “specified price”. With this type of order, you can buy or sell a currency at a “specified price . For example, the current price of EUR/USD is 1.2050, and you think it is worth buying if the price breaks through 1.2070. At this point, you have two options, one is to sit in front of the computer and wait until the price rises to 1.2070 to buy; the other is an easy way, you can immediately create a pending order to buy EUR/USD at 1.2070, To be precise, it belongs to the “stop-loss buy order” in the pending order. When the price rises to 1.2070, your trading software will automatically buy it for you.
There are four types of pending orders:
- Buy Limit Order – A pending buy order below the current price
- Stop buy order – a pending buy order above the current price
- Sell Limit Order – A pending sell order above the current price
- Stop Sell Order – A pending sell order below the current price