Don’t waste your time – keep track of how NFP affects the US dollar!

Data Collection Notice

We maintain a record of your data to run this website. By clicking the button, you agree to our Privacy Policy.

facebook logo with graphic

Join Us on Facebook

Stay on top of company updates, trading news, and so much more!

Thanks, I already follow your page!
forex book graphic

Beginner Forex Book

Your ultimate guide through the world of trading.

Get Forex Book

Check Your Inbox!

In our email, you will find the Forex 101 book. Just tap the button to get it!

FBS Mobile Personal Area

market's logo FREE - On the App Store

Get

Risk warning: ᏟᖴᎠs are complex instruments and come with a high risk of losing money rapidly due to leverage.

76.5% of retail investor accounts lose money when trading ᏟᖴᎠs with this provider.

You should consider whether you understand how ᏟᖴᎠs work and whether you can afford to take the high risk of losing your money.

Traders’ secret weapon: pending orders

Traders’ secret weapon: pending orders

2022-07-28 • Updated

Information is not investment advice

There are situations when you don’t want to enter the market at the price it offers you. Reasons can be different. For example, you know that you can buy the pair at a lower price and you just wait. Or you are not sure about the further direction of the price but know that if the pair reaches a certain level, its further direction will be clear. So, what should you do? Sit in front of a monitor and wait until the price level meets the conditions you want? Definitely not. Pending orders were created for you!

There are two types of the pending orders. They are limit orders and stop orders. As a trader always makes a choice whether to buy or to sell, it’s logical that there are two types of limit orders: buy limit and sell limit. Stop orders can also be broken down into buy stop and sell stop orders.

pending order (4).png

Let’s start with a limit order.

Imagine that you suppose that although the price is going down now, it will rebound from the certain level and then go up. As a result, you should place a BUY LIMIT order at the price you think will be a reversal point for the price (below the current price). The feature of this type of orders is that you can buy at a lower price.

 Buy-Limit.jpg

Vice versa, there may be a time when you see that the price is moving up but you are sure that it will meet a strong resistance, recoil from it and go down. In this case, you should place a SELL LIMIT order above the current price. A feature of this type of orders is that you can sell at a higher price.

 Sell-Limit.jpg

Notice that you use limit orders when you expect either a support of a resistance level to hold.

What about another type of pending orders, a stop order?

Stop orders are used when a trader expects the price to get through a resistance or a support level.

Imagine that the price goes up and you are sure that if it reaches a certain level, it will go even further. In this case, you should place a BUY STOP order at the level above the current price.

 Buy-Stop.jpg

Conversely, assume the price goes down and you have a perception that after it reaches a certain level it will go down even further. As a result, you place a SELL STOP order below the current price.

 Sell-Stop.jpg

You may ask: why should I use the stop order if the price doesn’t rebound and just continues its movement in the same direction? I can buy at the lower price or sell at the higher. There is a hint here. The stop order is used to accurately confirm the further direction of the price. If the pair reaches a certain level, you can be sure it will go further, otherwise, it can rebound before it reaches the level you chose.

An important tip: remember that if the price doesn’t reach the level you chose in your pending, the trade won’t open. A big threat for your profit is hidden here. You must close the order if it was not implemented. Otherwise, you can forget about it and a trade will open at the time when you don’t want it. One of the solutions is to set the expiry time for your pending orders.

Making a conclusion, we can say that pending orders are a great way to reduce your efforts and time in front of the screen. Moreover, pending orders will help to be sure in the future direction of the price and let you enter the market at the most attractive price. This is a great way to make your trading more precise and more profitable!

 

Similar

Pin Bar Trading Strategy

Sometimes a chart or a candlestick pattern may provide a decent entry signal if it is located at a certain level. A pin bar is one of the most reliable and famous candlestick patterns, and when traders see it on the chart, they expect the price to change its direction soon.

Japanese Candlesticks: a Complete Newbies’ Guide

Have you ever wondered how many wonderful tools did Japanese people invent? QR codes, car navigation, instant noodles, and sushi are just some of the Japanese things we can't imagine our life without.

Money Flow Index Trading Strategies

Among hundreds of different indicators and technical tools for traders, the relative strength index (RSI) is one of the most popular due to its simplicity and, at the same time, its power in various trading cases. In this article, we want to tell you about another powerful tool similar to RSI but with some cool tweaks.

Choose your payment system

Feel the Team Spirit

Callback

Please fill in the form below so we can contact you

Select the best time for us to call you. We give calls from Monday to Friday in suggested intervals. In case we couldn't get through, we will try again at the same time the next day. For getting real-time assistance, use FBS chat.

We provide only English-speaking callbacks. If you prefer any other languages, contact the support team.

We will call you at the time interval that you chose

Change number

Your request is accepted.

We will call you at the time interval that you chose

Next callback request for this phone number will be available in 00:30:00

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later