What is a Pending Order?
Pending Order is a pre-set buy or sell order, waiting for the price to reach a certain point. When the price reaches that point, the pre-set order will automatically execute. This Pending Order feature helps traders plan the best entry points and ensures they enter orders as planned. It is especially suitable for traders who do not have time to trade.
How to activate a Pending Order
If you want to use all the commands, you can go to the MT5 program, right-click, then select Trading, then select New Order, and set the desired Pending Order.
Types of Pending Orders
In the MT4 trading platform, there are 4 types of Pending Orders, which are Buy Stop, Sell Stop, Buy Limit, and Sell Limit. In the MT5 trading platform, there are 2 additional types of Pending Orders, which are Buy Stop Limit and Sell Stop Limit. Each order type has different characteristics.
Buy Stop
It is a buy order at a price higher than the current price. When the price rises to the level specified in the Buy Stop order, the system will automatically open a Buy order at the price we have specified. Most traders use this order to plan their trades, anticipating that the price will rise further.
Sell Stop
It is a sell order at a price lower than the current price. When the price drops to the specified price in the Sell Stop order, the system will automatically open a Sell order at the price we have specified. Most traders use this order to plan their trades, anticipating that the price will decrease further.
Buy Limit
It is a buy order at a price lower than the current price. When the current price drops to the price specified in the Buy Limit order, the system will automatically open a Buy order at the price we have specified. Most traders use this order to plan their trades, anticipating that the price will decrease to the set price and then rebound in the future.
Sell Limit
It is a sell order at a price higher than the current price. When the current price rises to the price specified in the Sell Limit order, the system will automatically open a Sell order at the price we specified. Most traders use this order to plan their trades, anticipating that the price will surge to the set price point and then reverse in the future.
Buy Stop Limit
It is a buy order at a price higher than the current price. This order differs from a regular Buy Stop. In its operation, the current price must rise to the first specified price. After that, the price will decrease and touch the Buy Stop Limit order set. Most traders use this order to plan their trades, predicting that the price will spike to the first specified price, then reverse and touch the pre-set order, and the price will rise again in the future.
Sell Stop Limit
It is a sell order at a price lower than the current price. This order differs from a regular Sell Stop in that the current price must first drop to the specified initial price before it adjusts upward.
Then hit the order Sell Stop Limit that has been set. Most traders use this order type to plan their trades, predicting that the price will drop to the first set price point, then rebound to hit the pre-set order, and eventually drop again in the future.
