Market Order & Pending Order in Forex Trading

Market Order is an order to be executed based on broker selling price (Ask Price) or broker buying price (Bid Price). Usually, the broker will guarantee the implementation of this transaction. You can trade by way of market order if you are lazy in line and want to immediately transact the currency you have. With Market Order, the transaction will be faster and no need to wait for the queue. To get the best forex investments, you can visit our website.

While Pending Order is an order where you can specify transaction at a certain desired price. Buy or sell transactions will be executed based on the terms of the transaction set by the trader himself. With the Pending Order facility, the trader expects to get a better price in the future based on the analysis that has been done, but there is no guarantee of the implementation of this transaction because it depends on the price movement during the time specified. There are 4 types of Pending Order transactions you can do:

– Buy Stop

Buy Stop means Buy if price> set price. In this transaction, the trader will buy when the price continues to rise and has passed a certain point set by the trader. In this case, the trader selects the pending order on the initial condition of the Bullish market (the price is expected to continue to rise).

– Sell Stop

Sell Stop means Sell when price <price specified. In this transaction, the trader will sell when the price continues to fall and has passed a certain point that can be tolerated by the trader. In this case, the trader selects the pending order at Bearish market’s initial condition (the price is expected to continue to fall).

– Buy Limit

Buy Limit means Buy if price <specified price set. In this transaction, the trader will buy when the price that had been up to will reverse below a certain price before continuing the increase again. This condition is also called Buy On Weakness. In this case, the trader selects this pending order if the market thinks it will reverse direction after dropping to a certain level in order to get a better buy price.

– Sell Limit

Sell Limit means Sell when price> specified price. In this transaction, the trader will sell when the price that was going down will reverse upward to a certain price before continuing the decline again. This condition is also called Sell On Strength. In this case, the trader selects this pending order if the market thinks it will reverse direction after rising at a certain level in order to get a better selling price.

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