A pending order is the trader’s commitment to buy or sell an instrument at a specified price sometime in the future.
Most commonly, you can use a pending order to create an order that will be executed automatically if the market reaches a certain level. The order essentially contains two variables – price and duration. You can specify the price at which you would like to buy/sell an instrument and also specify the duration that the order should remain active.
You can select from four different pending order types.
- For a Buy Limit the current market has to be offered at, or above, your chosen level.
- For a Sell Limit the current market has to be bid at, or below, your chosen level.
- For a Buy Stop the current market has to be offered at, or below, your chosen level.
- For a Sell Stop the current market has to be bid at, or above, your chosen level.
