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Pending order forex is one of the important strategies of currency trading. Using this order, you don’t have to stay glued to your computer screen for 24*7. A pending order is placed for opening a position in a trade. It is basically a request for purchase/sale of a currency pair when it reaches that point mentioned in the order; i.e. current market rate. It will automatically trigger if your set price level has been reached.

Being a newcomer in this enormous financial industry, it is very significant for you to understand different approaches that can bring you more money.

Well, coming to pending orders forex, there are mainly four types 

  • Buy Limit order

  • Buy Stop order

  • Sell Limit order

  • Sell Stop order

What are these? Come! Have a look:

  1. Buy Limit order 

Buy limit order is used when you want to purchase a currency pair below the current market price level. That denotes that market value would be higher than the set order.

Example – Assume that 1.3750 is current market value of USD/EUR. If technical analysis says, 1.3700 would be a good support level for you to enter a long trade, then you have to place your buy limit order at 1.3700 along with right stop loss and take profit limits.

  1. Buy Stop order 

Unlike the pending order forex, a trader uses buy stop order to purchase a currency pair at a value higher than present market value. This order is usually placed when assumption says the price will pass a set level and keep going.

Example – In the same context mentioned above, you have to set your buy stop order at 1.3790 when 1.3780 seems to be a weak resistance. Make sure to place the stop loss and take profit limits carefully.

  1. Sell Limit order 

Do you think selling a pair at a price above current market value would be a good idea? Then you can use sell limit order. Make sure to set that besides a strong resistant level so that you can seize away profit from a bounce off.

Example – When you expect a reversal at 1.3780 which you think also has a strong resistance, place your sell limit order at that level.

  1. Sell Stop order 

Quite the opposite of the previous one, a sell stop order is placed below the level of existing current market price. This order is usually set with the assumption that price will continue to fall.

Example – From our instance, if analysis shows, 1.3730 has a weak support; you can place your sell stop order at a point of 1.3720. That’s the trick to grab profit from possible escape.

Pros of pending orders forex:

Pending order forex has gained wide popularity among the traders today for some good reasons.

  • Allows you to open profitable positions

  • This tactic has been proved to be highly efficient

  • These orders also reduce your psychological pressure

  • Helps profitability escalates multiple times

  • Both beginners and professionals can conveniently use them

While you are in this real world money-making market, these techniques and strategies like pending orders forex would surely earn you the desired profit.

Remember, “The expert in anything was once a beginner.”

 

 

 

 

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