In Forex trading, it often happens that novice traders have to sit for days in front of the monitor, waiting for favorable conditions for entering a trade. At the same time, not all of them think about whether it is worthwhile to immediately buy or sell an asset at a price that seems attractive at the moment?
There are many ways to make it easier for a trader to trade and shorten their waiting time without losing a profit on the transaction.
One of these methods is a pending order.
Pending Order - a trader’s order to conclude a transaction at a price that differs from the current market.
A pending order kicks in as soon as the price reaches the mark that was determined in advance: for purchases - this is Ask, for sales - Bid.
Simply put, somebody buys or sells a currency at a price threshold that is personally set which is preferable for you to complete the transaction. Pending orders are very popular with large companies, as they are characterized by increased accuracy.
As a result of such a delay, the following advantages are as follows:
There are several types of pending orders:
an order to sell at a price higher than the current market price.
a buy order at a price below the current market price.
an order to sell at a price below the current market price.
a buy order at a price higher than the current market price.
A protective order is a type of pending order that is used when the indicated price is worse for the trader than the current market one. Represents insurance against unforeseen price movements.