Pending Order Definition

A pending order is an instruction to buy or sell an asset once the price reaches a specified level, rather than immediately.

What is a Pending Order?

Common types of pending orders include buy limit, sell limit, buy stop, and sell stop orders.

Pending orders allow traders to plan entries in advance without monitoring the market continuously.

Setting a buy stop order above the current price to catch a potential breakout is an example of a pending order.

A pip is the smallest standardized price movement in a currency pair, typically the fourth decimal place.

A portfolio is a collection of financial assets, such as stocks, bonds, currencies, or commodities, held by an individual or institution.

Position sizing is the process of determining how much capital to allocate to a specific trade.