A pending order allows traders to buy and sell securities at a pre-defined price in the future. This type of order is used to execute a trade if price reaches the pre-defined level; the order will not be filled if price does not reach this level. There are four types of pending orders available in MT4 .
- Buy Limit – an order to purchase a security at or below a specified price. Limit orders must be placed on the correct side of the market to ensure they will accomplish the task of improving price. For a buy limit order, this means placing the order at or below the current market bid.
- Sell Limit – an order to sell a security at or above a specified price. To ensure improved price, the order must be placed at or above the current market ask.
- Buy Stop – an order to buy a security at a price above the current market bid. A stop order to buy becomes active only after a specified price level has been reached (known as the stop level). Stop orders work in the opposite direction of a limit order, with buy stop orders placed above the market and sell stop orders placed below the market. Once a stop level has been reached, the order will be immediately converted into a market or limit order.
- Sell Stop – an order to sell a security at a price below the current market ask. A stop order to sell becomes active only after a specified price level has been reached.
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