What types of pending orders are there?

A pending order is an instruction from the client to buy or sell a financial instrument at a specific price in the future.

There are four types of pending orders:

1. Buy Limit – This order is used to buy when the future 'Ask' price reaches the specified level. The current price is higher than the set order price. This type of order is executed at the order price or lower. Typically, Buy Limit orders are placed when the trader expects the price to fall to a certain level before rising again.

2. Buy Stop – This order is used to buy when the future 'Ask' price reaches the specified level. The current price is lower than the order price. When executed, this order will be filled at the current market price, which may differ from the price specified in the order. Buy Stop orders are placed in anticipation that the price will continue rising once it reaches a certain level.

3. Sell Limit – This order is used to sell when the future 'Bid' price reaches the specified level. The current price is lower than the set order price. The order will be executed at the price specified or higher. Sell Limit orders are placed when the trader expects the price to rise to a certain level before falling again.

4. Sell Stop – This order is used to sell when the future 'Bid' price reaches the specified level. The current price is higher than the order price. When executed, the order will be filled at the current market price, which may differ from the price specified. Sell Stop orders are placed in anticipation that the price will continue to decrease once it reaches a certain level.