What Is a Pending Order? How Pending Orders Work on an Exchange
A pending order lets you step away from the chart: you set the price in advance, and the exchange opens or closes the trade for you. Here are the types of pending orders and how to use them.
What it is
A pending order is an order that doesn't fill right away but waits until the price reaches a set level. This lets you plan your entry and exit in advance instead of making emotional decisions.
Types of pending orders
| Order | Where it's placed | The idea |
|---|---|---|
| Buy Limit | Below the current price | Buy on a pullback to support |
| Sell Limit | Above the current price | Sell near resistance |
| Buy Stop | Above the current price | Buy on a breakout above a level |
| Sell Stop | Below the current price | Sell on a breakdown |
Stop-loss and take-profit orders belong here too: they're pending exit orders. How to set them is covered in the article take-profit and stop-loss.
How to use them
- Define your plan in advance: entry, stop, and target, before you place the order.
- Set a stop-loss right away, together with the entry order.
- Watch out for false breakouts: a stop entry order may trigger, and then the price may come back.
- Cancel forgotten orders: the situation may have changed.
Order types and how they work with a broker are covered in the lesson brokers, accounts, and order types. How to turn a trading idea into a set of orders is in the article how to read a trading signal.
Aspiro Trade offers signals on 45 assets, and each one comes with an entry, a take-profit, and a stop-loss. The first month is free.
- A pending order waits for a set price.
- Limit orders are for pullbacks; stop orders are for breakouts.
- Set your stop-loss right away together with your entry.
Frequently Asked Questions
How is a Buy Limit different from a Buy Stop?
A Buy Limit is placed below the price to buy cheaper on a pullback. A Buy Stop is placed above the price to buy when the price breaks through a level.
How long does a pending order last?
It depends on the settings: until canceled, until the end of the day, or until a set date. Check the expiration setting when you place it.
Can a pending order fill at a worse price?
During a sharp move, a stop order can fill with slippage. A limit order fills at your price or better, but may not fill at all.
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