What is a pending order?

What is a BUY STOP, SELL STOP, BUY LIMIT, and SELL LIMIT? Let’s find out!

Using pending orders is key to make good and healthy trading. This tool keeps a 24/7 free virtual assistant on your trades. Improves the results, and it is useful to keep emotions under control, helps to follow the trading plan, and for those investors who cannot be in front of their screen during the whole session, it is a standalone solution.

Examples in this article are on MetaTrader 4 (MT4). If you are using a different platform, this tutorial is useful because all trading platforms are similar.

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Let’s get to work!

Four types of pending orders divided into two categories.

LIMIT ORDERS

BUY LIMIT: A pending order to buy when the current price is above the entry price. For example, the current price of XYZ is at 120, and the entry is at 100 (under the actual price). BUY LIMIT ORDER.

SELL LIMIT: A pending order to sell when the current price is below the entry price. For example, the current price of XYZ is at 120, and the entry is at 140 (above the actual price). SELL LIMIT ORDER.

STOP ORDERS

BUY STOP: A pending order to buy when the current price is below the entry price. For example, the current price of XYZ is at 120, and the entry is at 140 (above the actual price). BUY STOP ORDER.

SELL STOP: A pending order to sell when the current price is above the entry price. For example, the current price of XYZ is at 120, and the entry is at 100 (under the actual price). SELL STOP ORDER.

Elliott Wave Street® Pending Orders Diagram

Pending orders

How to place pending orders on the MetaTrader 4 platform?

Step 1
Click on “New Order” or press F9 :

pending orders

In the “Type” section change from “Market Execution” to “Pending Order

Step 2
Within the “Pending Order” section use the drop-down menu to select the type of order, there are four options, “Buy Limit”, “Sell Limit”, “Buy Stop”, Sell Stop”.

Step 3
Type the Stop Loss and Take Profit of your trade.

Step 4
In some trading strategies, you can set an expiration date, and this is useful when you need to cancel the order when the order has not filled, for example, at the end of the trading day or the end of the week.

pending orders

Please note that the expiration date and time taken from the broker’s server time. The server time is on top of the market watch list.

pending orders

Now you know everything about pending orders!

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