How to Place a Pending Order in MT4

TutorialsJanuary 19, 2022

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Depending on the asset class and exchange on which they are traded, different instruments have different opening and closing times. If you want to open trade but the market is closed and you can’t wait until the market opens to enter, then the feature of placing a pending order in MT4 is extremely useful. A pending order is a command to open a position when an instrument reaches a certain price.

To set a pending order on the MT4 platform, follow the steps below:

How to place a pending order on MT4 terminal

In addition to placing new positions at market price (Market Execution), you can also place a pending order (Pending Order) on Metatrader4.

To place a pending order on MT4:

  1. Click on Type > select Pending Order in the Order window.
  2. Under Pending Order, select 1 of 4 types of pending orders (Buy Limit, Sell Limit, Buy Stop, Sell Stop)
  3. Enter the price you want to place and the order’s expiry date and time.
  4. Then press Place to place a new order.
How to place orders on MT4?

Explain the information in the “Pending Order” fields:

  • Type – choose a pending order type: Buy Limit, Buy Stop, Sell Limit, or Sell Stop.
  • at price – specify the price level at which the order must be executed;
  • Expiry – specify the order’s expiry date and time. If the order has not triggered by this time, it will be automatically deleted.

What types of pending orders does MT4 offer?

Pending orders on MT4 are divided into four types:

  • Buy Limit – an order to buy at the bid price (Ask price) equal to or lower than the price specified in the order. At this point, the current price is higher than the value specified in the order. Orders of this type are usually placed with the expectation that the price will rise after falling to a certain level.
  • Buy Stop – an order to buy at the bid price (Ask price) equal to or higher than the price specified in the order. At this point, the current price is lower than the value specified in the order. Orders of this type are normally placed with the expectation that the price of the instrument will reach a certain level and continue to rise.
    How to place a pending order (Pending Order) on the Meta Trader 5 trading platform
  • Sell ​​limit – a trading order to sell at the ask price (Bid price) equal to or higher than the price specified in the order. At this point, the current price is lower than the value specified in the order. Orders of this type are usually placed with the expectation that the price will drop after a certain level has been reached.
  • Sell ​​Stop – an order to buy at the ask price (Bid price) equal to or lower than the price specified in the order. At this point, the current price is higher than the value specified in the order. Orders of this type are normally placed with the expectation that the price of the instrument will reach a certain level and continue to fall.

Remember that Buy stops and Sell limits should be placed above the current market price, while Sell stops and Buy limits should be placed below the current market price.

When should these above pending orders be used?

Buy Limit and Sell Limit orders are usually placed at important support or resistance levels because prices will often bounce back when they touch these levels.

Meanwhile, the Buy Stop and Sell Stop order types are often used when the market is volatile or in a trend, as they will help traders benefit from the market’s continued price action.

After you have placed a successful pending order, and the market price reaches the expected price in the pending order, the order will be matched and appear on the Toolbox window.

Investiki.com

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