A pending order is an instruction received from the client to buy, sell, or close an order once a specific price level is reached.
If a Pending Order is selected, select the type of the order from the drop-down menu. Available order types include:
- Stop Loss: instructions to close an order once a certain "bid" or "ask" price level is reached. This is used as a risk management tool to limit potential loss.
- Take Profit: instructions to close an order once a certain "bid" or "ask" price level is reached. This is used to secure profits at a specific price level.
- Buy Limit: buy, provided the future "ask" price is equal to the pre-defined value. The current price level is higher than the value of the placed order. Orders of this type are usually placed when anticipating that the security price will increase after falling to a certain level.
- Sell Limit: sell, provided the future "bid" price is equal to the pre-defined value. The current price level is lower than the value of the placed order. Orders of this type are usually placed in anticipation that the security price, having increased to a certain level, will fall.
- Buy Stop: buy, provided the future "ask" price is equal to the pre-defined value. The current price level is lower than the value of the placed order. Orders of this type are usually placed in anticipation of that the security price, having reached a certain level, will keep on increasing.
- Sell Stop: sell, provided the future "bid" price is equal to the pre-defined value. The current price level is higher than the value of the placed order. Orders of this type are usually placed in anticipation of that the security price, having reached a certain level, will keep on falling.
Then specify the price at which the order will be triggered by entering the value next to the ‘at price’ field. To avoid manually entering the price, click on the up or down arrow next to the price field to fill in the current price and adjust as necessary.