ForexVue
Level 2 · Lesson 5 of 14 · 6 min read

Pending Orders: Set It and Wait

Buy Limit, Sell Limit, Buy Stop, Sell Stop. Know when to use each.

Laurent Researched and written by

Orders That Wait for You

A pending order is an instruction to your broker: "When price reaches X, execute this trade." You set it up in advance, then walk away. The order triggers automatically if the price is reached.

There are four types, and they confuse beginners. Here's a visual that makes it simple:

4 Types of Pending Orders
Sell Limit Sell above current price "Price will rise to here, then reverse down"
Buy Stop Buy above current price "If price breaks above here, it will keep going up"
↔️ Current Price: 1.0850
Buy Limit Buy below current price "Price will drop to here, then bounce up"
Sell Stop Sell below current price "If price breaks below here, it will keep falling"

Limit Orders: Buying the Dip, Selling the Rally

Buy Limit: You want to buy EUR/USD, but the current price (1.0850) is too high. You think it will drop to 1.0800 before bouncing back up. You set a Buy Limit at 1.0800. If price reaches 1.0800, your buy order triggers automatically.

Sell Limit: You want to sell EUR/USD, but you think it will rise to 1.0900 before reversing down. You set a Sell Limit at 1.0900. If price reaches 1.0900, your sell order triggers.

Limit orders get you a better price than the current market. You're saying "I'll only enter if the market comes to me."

Stop Orders: Trading Breakouts

Buy Stop: EUR/USD is at 1.0850 and there's strong resistance at 1.0900. You believe that if price breaks above 1.0900, it will continue rising. You set a Buy Stop at 1.0902 (slightly above resistance). If price breaks through, your buy triggers and you ride the breakout.

Sell Stop: The opposite. You set a sell order below support, expecting a breakdown to continue.

Stop orders get you a worse price than the current market, but they're used strategically to catch momentum moves.

Easy way to remember: Limit orders = "I want a better price, I'll wait." Stop orders = "If price breaks this level, I want to jump on the move." Both execute automatically, but for opposite reasons.

Order Expiry

When you set a pending order, you can choose how long it stays active:

  • GTC (Good Till Cancelled): Stays active until you cancel it or it triggers
  • GTD (Good Till Date): Expires on a specific date/time if not triggered

If the market never reaches your pending order price, nothing happens. No trade is opened, no money is spent.

✅ Check your understanding
You want to buy EUR/USD if it drops to 1.0800 (currently at 1.0850). Which order type?
🔗 Match the pairs
Match each pending order to when you use it:

Key Takeaways

  • • Pending orders execute automatically when price reaches your specified level.
  • • Buy Limit = buy below current price (expecting a bounce up).
  • • Sell Limit = sell above current price (expecting a reversal down).
  • • Buy Stop = buy above current price (expecting a breakout higher).
Glossary: Limit Order Glossary: Stop Order
Market Orders in Forex: Buy Now, Sell Now Stop-Loss Orders: Your Seatbelt