Pending Orders in Forex: 4 Types & How They Work

Forex is one of the most liquid components of the global financial markets, with traders executing approximately $2 trillion worth of trades daily. In the last couple of years, forex has turned into a popular trading avenue for newcomers, meaning that learning the basic features of FX trading, particularly when it comes to the pending order step of investing, is more important than ever before.

So, what are pending orders, and how many types are there?

What Are Pending Orders?

In forex trading, a pending order is the trader's order to buy or sell a currency pair at a later time, when it goes above or below a certain price.

For example, if you are trading the USD/CAD currency pair, and you want to exit your position at a designated price of 1.2899, you will place a sell limit instruction on your order (we will get to that in a moment).

This makes the process more manageable and convenient than sitting in front of your computer and waiting for your price target. Plus, during some trading sessions, you will notice that volatility can be immense or movements can be rather tepid. It all depends on what you are trading and when you are participating in the forex market. The fast and furious ticks can be either helpful or challenging, depending on your circumstances.

» Want to learn more about forex currency pairs? See our guide