Instant Orders Vs Pending Orders in FX Trading

One of the first things you’ll need to learn about FX trading is the difference between instant orders and pending orders. You may need to initiate either of these types of order throughout your trading life, whether you’re trading independently or following forex signals.

Instant Orders

BUY STOP = Order placed ABOVE price and keeps going UP
BUY LIMIT = Order placed BELOW price and price then goes up
SELL STOP = Order placed BELOW price and price keeps going DOWN
SELL LIMIT = Order placed ABOVE price and then goes DOWN

With instant orders, it’s always a good idea to have a stop loss in place; there are even traders who do not set take profits that will usually have either a stop loss or trailing stop. This is because the market can shift faster than the trader can react.

Pending Orders

On the popular MetaTrader 4 platform for instance, pending orders are initiated in nearly the same way as instant, they simply have additional requirements written in when defining the trade.

Here are a few definitions that you should know when dealing with pending orders:

FxPremiere Signals

Which Type of Forex Order is for me?

Deciding whether to initiate a pending order or an instant order will depend on the trading strategy that you are using. Some traders initiate only instant orders because they are trading live; they are watching the market signals actively and deciding when they should buy or sell.

FX Signals

While this is legitimate, it also requires a lot of attention and work; the trader simply cannot look away because the forex market operates too quickly. On the other hand, pending orders give a trader flexibility, the capability to strategize, and to plan their trading activity more accurately. Foreign Exchange Forex FX

So, to round up…

Pending trade orders are what you should use if you want to initiate trades based on specific market prices. If you are using forex signals, looking to implement a trading strategy, this is the way to go. Introduction to Order Types

Choosing a type of forex order will depend on your own trading strategy, your risk tolerance, and ability to monitor the market.

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