Pending order

A pending order instructs a broker to execute a trade once a specified market price is met. Unlike a market order, which executes immediately at the current price, a pending order waits for the market to reach a predetermined entry or exit point. This allows traders to set up trades in advance without constant market monitoring, activating only when conditions are satisfied.

For retail traders, pending orders are a key risk management tool, enabling disciplined entry and exit strategies. They help prevent emotional decisions by pre-defining trade parameters, such as a stop-loss or take-profit. This reduces the risk of overtrading or chasing price, contributing to a more systematic approach to trading forex.