Pending order is the client's commitment to the brokerage company to buy or sell a security at pre-defined conditions in the future. The following types of pending orders are available:
■Buy Limit — trade request to buy at the Ask price that is equal to or better than that specified in the order. The current price level is higher than the value in the order. Usually this order is placed in anticipation of that the security price, having fallen to a certain level, will increase;
■Buy Stop — trade request to buy at the Ask price that is equal to or better than that specified in the order. The current price level is lower than the value in the order. Usually this order is placed in anticipation of that the security price, having reached a certain level, will keep on increasing;
■Sell Limit — trade request to sell at the Bid price that is equal to or better than that specified in the order. The current price level is lower than the value in the order. Usually this order is placed in anticipation of that the security price, having increased to a certain level, will fall;
■Sell Stop — trade request to sell at the Bid price that is equal to or better than that specified in the order. The current price level is higher than the value in the order. Usually this order is placed in anticipation of that the security price, having reached a certain level, will keep on falling;
■Buy Stop Limit — this type is the combination of the two first types being a stop order for placing Buy Limit. As soon as the future Ask price reaches the value indicated in the order, a Buy Limit order will be placed at the level, specified in the order. The current price is lower than that, reaching which the pending order will be placed.
■Sell Stop Limit — this type is a stop order for placing Sell Limit. As soon as the future Bid price reaches the value indicated in the order, a Sell Limit order will be placed at the level, specified in the order. The current price is higher than that, reaching which the pending order will be placed. The pending order price is higher than the price of its placing.
In the pending order section there are 4 types:
Buy Limit: This means that as soon as price drops to X, you want to Buy it
Sell Limit: This means that as soon as price rises to X, you want to Sell it
Buy Stop: This means that as soon as price rises to X, you want to Buy it
Sell Stop: This means that as soon as price drops to X, you want to Sell it
