Pending Buy Limit order

What is a pending Buy Limit order?

Buy Limit Order - this type pending orderThe order is used by exchange traders, which is set on the price chart in advance so that it is possible to buy an asset at a price that is cheaper than the current price level. The slang name for pending orders is "pending orders" or "pendants".

How a Buy Limit order works

The principle of a Buy Limit Order is that the trader plans to buy an asset ALWAYS at a better price than the current price.

Suppose we have an uptrend in the EUR/GBP pair. We assume that in the near future the price will reach the trend support line at 0.7335, form a rebound and continue the uptrend movement.

What is a pending Buy Limit order
The upward trend in the EUR/GBP currency pair and operation of the Buy Limit order

The current price in the EUR/lb pair is 0.74003. That is, we want to buy at a price which is less than the current price. In a prospective point of a bounce of the price and the pending order Buy Limit is established.

What is a pending Buy Limit order
Where to place a pending Buy Limit order

If the price reaches the specified point, the broker will open a buy position, even if trading terminal closed. All pending orders are stored on brokers' servers, which implies entering the market at a clearly specified price, if there is no slippage.

How to set a pending Buy Limit order?

1. В торговом терминале MetaTrader 4 устанавливается ордер Бай Лимит через ту же панель ордеров, что и рыночный ордер. Для этого во вкладке «Тип» нужно выбрать «Отложенный ордер», а далее – собственно, тип самого отложенного ордера — Buy Limit.

What is a pending Buy Limit order
Selecting a pending order in MetaTrader 4
What is a pending Buy Limit order
Selecting a pending Buy Limit order

2. Установив требуемую цену открытия, следует нажать «Установить ордер», после чего на графике и во вкладке терминал появится отложенный ордер Бай Лимит.

What is Buy Limit
Set Buy Limit order

3. now for the established order Buy Limit it is necessary to set stop loss and take profit orders. This is done as follows. All pending orders are displayed in the tab "Trade" below already open orders under the line "Balance". Click the right mouse button to open the context menu and select "Modify or Delete Order".

Call the context menu to modify a pending order
Call the context menu to modify a pending order

In the menu of the modification it is possible to change the price of the order execution, stop-loss and Take ProfitThe order will be automatically deleted, as well as the date and time after which the failed order will be automatically deleted.

What is Buy Limit
Modification of a Buy Limit pending order

Example: Going back to our example, we set a stop loss under the previous price low (0.7185), a take profit at the trend resistance line (0.7715) and set a time and date to automatically delete the order (22.00 09.10.2015) if it is not open.

What is a Buy Limit order
Example of setting a pending Buy Limit order

What is the difference between a Buy Limit order and a Buy Stop order?

It is easy enough to distinguish a Buy Limit order from a Buy Stop order:

  • ордер Buy Limit — это ВСЕГДА покупка по цене, лучше текущей. То есть, ордер Buy Limit устанавливается, когда мы предполагаем, что цена СНИЗИТСЯ до определенного уровня и возобновит рост.
  • ордер Buy Stop — это всегда покупка по цене ХУЖЕ текущей. То есть, ордер Buy Stop устанавливается, когда мы предполагаем, что цена ВЫРАСТЕТ до определенного уровня и продолжит свой рост.

Even if you are a beginner, the MetaTrader 4 terminal will not let you confuse pending Buy Limit and Buy Stop orders. If you try to set a Buy Limit order in the orders panel at a price worse than the current one, the terminal will not let you do it, displaying the following message:

What is a pending Buy Limit order
Message about incorrect pending order setting

Существует и другой способ. Для этого нужно кликнуть правой кнопкой мышки на ценовой график и выбрать вкладку «Торговля». В зависимости от того ВЫШЕ или НИЖЕ текущей цены Вы кликнули мышкой, терминал покажет доступные для установки отложенные ордера:

Right-click below the current price. Available pending orders: Buy Limit and Sell Stop

What is Buy Limit
Pending orders available for installation

Orders are available for installation:

  • Buy Limit — покупка по цене ЛУЧШЕ, чем текущая;
  • Sell Stop — продажа по цене ХУЖЕ, чем текущая.

Right-click on the mouse above the current price. Available Sell Limit and Buy Stop pending orders

What is a pending Buy Limit order
Pending orders available for installation

Orders are available for installation:

  • Sell Limit — продажа по цене ЛУЧШЕ, чем текущая;
  • Buy Stop — покупка по цене ХУЖЕ, чем текущая.

A pending order set in this way can be modified by setting the desired opening price, stop-loss and take-profit levels.

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