Types of Pending Orders

Pending orders allow traders to automatically open a position when the market reaches a specified price level.

1. Buy Limit

A Buy Limit order is placed below the current market price.

It is used when a trader expects the price to fall to a lower level before rising.

Example:
EUR/USD is currently trading at 1.1050.
You expect the price to drop to 1.1000 before moving higher, so you place a Buy Limit at 1.1000.

➡️ The order will be triggered when the market price reaches 1.1000.

2. Sell Limit

A Sell Limit order is placed above the current market price.

It is used when a trader expects the price to rise to a higher level before falling.

Example:
EUR/USD is currently trading at 1.1050.
You expect the price to rise to 1.1100 before reversing lower, so you place a Sell Limit at 1.1100.

➡️ The order will be triggered when the market price reaches 1.1100.

3. Buy Stop

A Buy Stop order is placed above the current market price.

It is used when a trader expects the price to continue rising after breaking through a certain level.

Example:
EUR/USD is currently trading at 1.1050.
You believe the price will continue upward if it breaks above 1.1100, so you place a Buy Stop at 1.1100.

➡️ The order will be triggered when the market price reaches 1.1100.

4. Sell Stop

A Sell Stop order is placed below the current market price.

It is used when a trader expects the price to continue falling after breaking through a certain level.

Example:
EUR/USD is currently trading at 1.1050.
You believe the price will continue downward if it falls below 1.1000, so you place a Sell Stop at 1.1000.

➡️ The order will be triggered when the market price reaches 1.1000.

Quick Comparison