Pending Orders
Pending Limit Orders and Pending Stop Orders
Limit Orders & Stop Orders
Pending Orders are orders which are used to open new trade after the market reaches a price given by the trader.
Pending Orders are used to buy or sell when the price quote attains a certain price target.
When a particular price level is reached then a pending order is executed.
Pending Orders are used to enter in to a trade position at a pre-determined price level. It's almost impossible to monitor the market every second & this is why a pending order can be used. If you feel the market might take a certain action, such as break-out through a specific price level that it has been touching but it hasn't been able to breakout this level, then as a gold trader you would want to use a Pending Order. Once the prices quote crosses your given level, your pending order is executed.
There are two different pending order types - xauusd limit order & xauusd stop order.
These pending orders are also known as gold entry orders.
Limit Order
A pending order to buy/sell at a certain limit.
An xauusd pending limit pending can be used to open buy below the ruling market price quote or sell above the ruling market price quote.
These Limit Orders are placed by traders when they expect the price to bounce back after reaching to the price quote level that the pending limit trade order was set.
- Buy Limit Specifies to open buy at a level that's below the ruling market price
- Sell Limit Specifies to open sell at a level that's above the ruling market price
Stop Order
A gold pending stop order is an order to buy above current market price or to open sell below the prevailing price.
When buying, a pending stop order is executed as the market goes up and touches buy stop price quote level.
When selling, a pending stop order is executed as the market price goes down & touches the sell stop price quote level.
- Buy Stop Specifies to open buy at a level that's above the ruling market price.
- Sell Stop Specifies to open sell at a level that's below the ruling market price.
More Lessons and Tutorials:
- How Do You Activate a XAU USD MetaTrader 4 Automated Trading Expert Advisor in MT4 Platform?
- Common Gold Question & Answers About XAU/USD
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- How Do You Trade MetaTrader 4 Upwards Gold Channel in MT4 Platform?
- What is an Example of a Upward Gold Trend?
- Technical Indicators for Setting Stop Losses in Gold
