Placing a pending order allows an order to be executed once it has reached the price set by the trader.
A pending order does not necessarily fill your trade at your desired price as factors such as news releases, fast-moving markets, and periods of low liquidity could mean your trade is filled at a better or worse price.
Why does someone place a pending order?
There are some reasons why a trader chooses not to trade directly, it could be because the price is not favorable or because the price is going in an unpredictable direction due to volatility. Some traders are also using signals for trading, in this case, they will want their trades to be executed when the signal is triggered. Therefore, placing a pending order suits those situations rather than opening a market execution order.
How do I place a pending order?
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Once you find the symbol that you would like to trade, open the “Order” window
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You need to click on the execution type displayed and select “Pending Order”.
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You can choose between 4 options:
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Buy Limit
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Sell Limit
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Buy Stop
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Sell Stop
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You can set the price at which you want the order to be triggered
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You can adjust the expiry time so the pending order will be deleted automatically if it has reached the time that was chosen
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You need to click “Place” once all the options are filled in per your preference
What are the differences between the four types of pending orders?
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Buy Limit and Sell Limit: These enable traders to set a specific price of their own for when they want their order to be triggered. Please note that Limit Orders are not guaranteed to be executed, especially if the price was never reached.
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Buy Stop and Sell Stop: These allow traders to have a specific stop price they want to sell or buy their trades at. Please note that stop orders might include slippage as there will be a marginal difference between the stop price and the market execution price.
For more information, we recommend you check this page.
Please note that if your order does not reach the settings you have configured, it will not be triggered.
How to close or modify a pending order?
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You need to double click on your pending order
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Inside “Modify Order”, you need to
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click “Delete” if you would like to delete
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adjust the settings if you would like to modify the pending order
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Alternatively, to close a pending order, you can also click the “X” button on the right side of your trade inside the Terminal - Trade window.
If you require further assistance from our support team, please contact us during our working hours as stated inside: How do I contact Valutrades Customer Support?