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Posted on Mar 12, 2021 at 03:51 PM
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FOREX PENDING ORDERS: A MUST-HAVE PROFIT TOOL

Are you looking to automate your trades and better control the outcomes? The Forex Pending Order is a really cool tool to consider and in this piece, we will show you why you need it as a must-have profit tool in your trading strategy.

Overview: Pending Order or Instant Execution?

To grasp a quick understanding of the differences between a Pending Order and Instant Execution trade, check out the scenarios below:

 

Imagine having an occasion to attend in a different state from your current residence and you need to book a hotel to spend the night, how would you go about this?

Scenario 1: If you are super organized (which is a good thing), you may want to make hotel reservations online ahead of time, pay, arrive on the evening before the party (exhausted of course) and “crash” already.

Scenario 2: On the other hand, if you are the “I want to see what I’m paying for” type, you arrive the evening before, endlessly exploring the city for hotels and lodgings having your dream room and that beautiful window view.

The first scenario is similar to a Pending Order trade while the second an Instant Execution trade.

Both are cool anyway, but take a look at the level of automation and control of the first scenario—Just so much comfort, planning and organization involved—No stress, and that is exactly what pending order is made for!

Taking a look at the second, however, you would observe it is kind of analogue, regular and not so techy, right?

There you have it; the big difference between Pending Order and Instant Execution trades!

Before we proceed to enlighten you on why pending orders are the bomb and can be used to make cool profits in your trades, let’s briefly give a bull’s-eye definition!

 

What are Pending Orders?

Pending orders are sets of instructions initiated from your MetaTrader 4 to Buy or Sell a currency pair, not immediately, but at a later date when certain prices are met. An example is when the price of EUR/USD is currently @1.1980 and you wish to buy at a lesser or higher price later

A Pending Order trade is the direct opposite of an Instant Execution trade and by initiating it, you are telling the broker: “Hey, place a buy or sell on ‘Commodity – A’ once it attains Price X. It doesn’t matter if I am online or ‘netflixing’, just place it!”.

 

What Makes Pending Orders Special and who is it for?

You might be busy with something else—say work, lunch or even a nap—and cannot afford to stay glued to your trading platform. With pending orders, you can easily automate your trades while you are not actually in front of your MetaTrader 4 application.

What makes pending orders especially cool is the fact that you can set them up according to your analyses and predictions, and instruct it to automatically trigger a position when certain conditions in prices are met.

This is your favourite tool if you are a big fan of entering the market at future prices while getting busy with other activities, allowing your trades to be automatically activated, your profits secured and your losses reduced to the barest minimum!

No doubt, the Pending Order is the real big fish designed to simplify your trading experience and when used with the right analysis, it becomes your mouthwatering recipe towards earning cool profits.

 

Types of Pending Orders.

Pending orders are of four (4) variants, depending on the prevailing market condition and the action to be achieved.

Each variant, together with its condition of usage, setup guide and situational example are presented below. This is getting practical and you might want to open up the MetaTrader 4 application on your PC to follow us as we proceed!

BUY LIMIT

The Buy Limit Pending Order is used when you wish to buy a currency pair at a level that is below the current price.

For example, imagine that the EUR/USD pair is currently at a price level of 1.2388 and you believe that it would drop further to 1.2310, and rise later.

Without being told, we know you would want to place a BUY immediately the market hits the 1.2310 price level. We would too.

Instead of hanging around and watching the chart go down slowly, it’s the Buy Limit Pending Order to the rescue! Just proceed to initiate a BUY LIMIT and a buy position will be automatically triggered at the 1.2310 price level. Perfecto!

Don’t know how to set up a BUY LIMIT yet? Follow the steps in the images below:

 Buy limit 1

Simply pick the currency pair to be traded, select the desired volume/lot-size, change your order type from “instant execution” to “pending order”, and select “buy limit” from the dropdown below. This allows you to insert your intended buy price, Take-Profit and Stop-Loss, and Viola! Your trade is waiting to be triggered. 

Cool, right? This saves you time and enables you to enter a trade at a better rate than currently available

SELL LIMIT

The Sell Limit Pending Order is used when you wish to sell a currency pair at a level above the current price.

For example, imagine that the GBP/USD pair is currently at a price level of 1.4531 and you believe that it would drop after it hits the 1.4700 price level.

To instruct your MetaTrader 4 application to automatically enter a sell position at the 1.4700 price level while you are not there, proceed to initiate a SELL LIMIT Pending Order right away.

Just like a BUY LIMIT order, a SELL LIMIT order lets you enter a trade at a price higher than the current market price.

Ready to set up a SELL LIMIT order? Follow the steps in the images below:

 

 sell limit 1Sell limit 2

Simply pick the currency pair to be traded, select the desired volume/lot-size, change your order type from “instant execution” to “pending order”, and select “sell limit” from the dropdown below. This allows you to insert your intended sell price, Take-Profit and Stop-Loss, and Viola! Your trade is waiting to be triggered. 

 

BUY STOP

The Buy Stop Pending Order is used when you wish to buy a currency pair at a level that is above the current price.

For example, imagine that the USD/JPY pair is trading at a price level of 92.46 and you believe that it will begin to rise after it hits the 92.55 price level.

To instruct your MetaTrader 4 application to automatically enter a buy position at the 92.55 price level while you are not there, proceed to initiate a BUY STOP Pending Order right away.

The BUY STOP Pending Order allows you to enter a buy position at a price lower than the current market price.

Ready to set up a BUY STOP order? Follow the steps in the images below:

 Buy Stop 1Buy stop 2

Simply pick the currency pair to be traded, select the desired volume/lot-size, change your order type from “instant execution” to “pending order”, and select “buy stop” from the dropdown below. This allows you to insert your intended buy price, Take-Profit and Stop-Loss, and Viola! Your trade is waiting to be triggered. 

 

 

SELL STOP

The Sell Stop Pending Order is used when you wish to sell a currency pair at a level that is below the current price.

For example, imagine that the EUR/JPY pair is trading at a price level of 114.28 and you believe that it will begin to drop after it hits the 113.40 price level.

To instruct your MetaTrader 4 application to automatically enter a sell position at the 113.40 price level while you are not there, proceed to initiate a SELL STOP Pending Order right away.

The SELL STOP Pending Order allows you to enter a sell position at a price lower than the current market price.

Ready to set up a SELL STOP order? Follow the steps in the images below:

 

 Sell stop 1Sell stop 2

Simply pick the currency pair to be traded, select the desired volume/lot-size, change your order type from “instant execution” to “pending order”, and select “buy stop” from the dropdown below. This allows you to insert your intended sell price, Take-Profit and Stop-Loss, and Viola! Your trade is waiting to be triggered. 

 

In Addition, one key feature of pending orders is that you can set expiry dates such that when conditions set do not activate at your desired time, you can choose to automatically delete the trades before they get activated. 

Let's look at the example below:

Problem: Let's assume you are a day trader and your analysis shows that a new resistance line may be forming at 1.2021 on the 30 mins time frame, but you aren't sure when the price would return to that line and do not want to miss out on the profit while you are off the MT4.

Solution: You place a pending order to trigger a sell at 1.2021, and because you are a day trader who does not like to hold trades till the next day, you can then add an expiry date of 24 hours (or whichever time you decide) to this condition so that in the advent it doesn't trigger within 24 hours the trades can be automatically deleted.

Look at the image below to see how to set your expiry date.

 

Screenshot (100)

 

Now What?

Now that you know the different types of pending orders and the various conditions necessitating their application, it’s time to go practical and set those pending trades ahead of the week! 

Have you got questions on pending orders? Let’s hear from you in the comment section right away!

Here's a Bonus 

Luckily for you, we post pending orders that can earn you between 50 - 100 pips weekly and here’s a little something for you! Answer 2 of the following questions correctly and get VIP alerts to our weekly pending orders for next week. 

  1. What are the differences between the Pending Order and Instant Execution trades?
  2. State two advantages of Pending Orders over Instant Execution trades.
  3. When best do you initiate a pending order?
  4. Can pending orders be initiated on mobile MetaTrader 4?
  5. Can multiple Pending Orders be initiated at once?

 


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Previous Comments

  • BELLO MAARUF
      Mar 20, 2021 at 10:15 PM

    ANSWER TO QUESTIONS. 1. Pending orders are sets of instructions initiated from your MetaTrader 4 to Buy or Sell a currency pair, not immediately, but at a later date when certain prices are met. However, Instant execution order is the real time execution at the correct desired position according to analysis and forecast. 2. Two Advantages of Pending order over instant execution are: (a) It saves time and enables us to enter a trade at a better rate than currently available. (b) We don’t have to spend time on the meta Trade4 platform watch the price to reach our desired analysis and forçats before entering a trade 3. That is when certain conditions in prices are met. 4. Yes very well. Pending orders can be initiated on Mobile Meta Trade 4 platform 5. Yes ofcourse multiple pending orders (buy limit, sell stop, buy stop and sell limit can all be initiated at once depending on the analysis and predictions gotten for different currencies combinations.

    Reply
  • EBIAMA KISMET
      Mar 25, 2021 at 07:55 PM

    1- while instant execution requires your online presence in placing trades, pending execution only requires your orders according to your analysis which would trigger a trade when certain conditions placed by the trader is met in the currency pair market 2-unlike the instant execution, pending order allows a trader to place trades without their presence, also pending order ensures comfortability, easy trading and multitasking of a trader unlike the instant execution which required a trader sole activity in trading 3- a pending order should be best executed when proper analysis has being made and a trader wishes not to miss out on a trade while away 4- definitely pending orders can be initiated on Metatrader4 and any metatrading platform 5 - just like any other trade placed or order made, several pending orders can be placed

    Reply

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