How do pending trades work?

Pending trades are an important feature on trading platforms that allow traders to set conditions to enter or exit the market in advance. This automated trading process helps avoid the need to constantly monitor the market and ensures that you don’t miss out on beneficial opportunities. In this article, we will discuss how pending trades work, the types of pending orders, how to create them, and other important aspects to keep in mind.

What are Pending Trades?

Pending trades are orders that are set in advance and only executed when certain conditions are met. These conditions can be based on the price of the asset or the time of entry into the market. Pending trades are useful especially when following a strategy or if you do not want to constantly monitor charts.

Types of Pending Orders

Most trading platforms offer two main types of pending orders:

• Price Order

• Time Order

How to Create a Pending Trade?

The process of creating a pending trade on the platform is easy and consists of several steps:

1. Open the trading terminal.

2. Select the asset (for example, a currency pair or stocks).

3. Find the “Pending Trade” option.

4. Choose the type of order.

5. For the price order, set the price at which you want to enter the market.

6. For the time order, set the time when you want to open the trade.

7. Set the amount and expiration time.

8. Confirm the order.

Characteristics of Pending Trades

Pending trades are executed only when the price or time matches the set parameters. If these conditions are not met, the trade will not open.

Additional Recommendations

• Manage Volatility: When setting a price for an order, consider market volatility, as the price can quickly exceed the set level.

• Check the expiration time of the order: Ensure that your order has not expired, as unactivated orders will automatically be removed after the expiration time.

• Use Pending Trades in Your Strategy: Pending trades allow you to plan your market entry and exit in advance, helping you follow your strategy without needing to constantly monitor charts.