Understanding and correctly using pending orders is essential for Forex trading. Their main advantage is that your broker will execute the trade automatically at your specified price — regardless of whether you’re logged in, at your terminal, or even online. Below we explain what pending orders are, their types, setup process, advantages, disadvantages, and practical examples.
What Are Pending Orders on Forex?
First, let’s clarify the difference between a market order and a pending order. A market order opens a position immediately at the current market price. A pending order, by contrast, instructs your broker to open a trade only when the market reaches a specific price level you set in advance.
Otherwise, pending orders function identically to market orders: you specify volume, stop-loss, and take-profit levels — and there’s no limit to how many you can place. Additionally, you may assign an expiration date and time; if the order hasn’t triggered by then, it’s automatically canceled.
You place a pending order through the same order entry panel used for market orders. In the “Type” dropdown, select “Pending Order”, then choose its specific type.
One key feature of pending orders is modification: you can change any parameter — execution price, stop-loss, take-profit, or expiration time — or delete the order entirely. To do so, locate the pending order under the “Trade” tab, below open positions and beneath the “Balance” line. Right-click to open the context menu and select “Modify or Delete Order”.
In the modification window, you can adjust the trigger price, stop-loss, take-profit, and expiration settings — all fully editable.
Types of Pending Orders on Forex
In MetaTrader 4, pending orders fall into two categories:
Pending Orders of Type Stop
- BuyStop
- SellStop
Pending Orders of Type Limit
- BuyLimit
- SellLimit
Stop orders are executed at prices worse than the current market price. That means BuyStop triggers above the current price, and SellStop triggers below it.
Limit orders are executed at prices better than the current market price. So BuyLimit triggers below the current price, and SellLimit triggers above it.
Let’s examine each type with concrete examples.
SellStop Order
Assume EUR/USD is in a range-bound (flat) market. Price is oscillating within a channel, and you anticipate a breakout below the lower boundary at 1.2728, followed by further downside movement. Since you can’t monitor the market 24/7, you delegate the trade to your broker via a pending order.
To decide which order to use:
- You want to sell → choose a Sell order.
- Current price is 1.2771; your intended entry after the breakout is 1.2700 — which is lower than the current price → this requires a Stop order.
- Therefore, you place a SellStop at 1.2700.
When placing or later modifying the order, you also set stop-loss and take-profit levels. Once triggered, your broker will open a short position at 1.2700 — regardless of your presence or terminal status — with your predefined risk and profit parameters.
BuyStop Order
Same EUR/USD flat scenario: price is inside the channel, but you expect a breakout above the upper boundary at 1.2835, followed by continued upward momentum. You again use a pending order to automate the long entry.
Step-by-step:
- You want to buy → choose a Buy order.
- Current price is 1.2762; your planned entry after the breakout is 1.2850 — which is higher than the current price → this requires a Stop order.
- Thus, you place a BuyStop at 1.2850.
Set stop-loss and take-profit during placement or later. Your broker will open a long position at 1.2850 once reached — with full automation and no manual intervention required.
BuyLimit Order
Now consider an uptrend in USD/CAD. You anticipate price will retrace to trend support at 1.1170, bounce, and resume its upward move. You want to buy at that support level.
Determine the order type:
- You want to buy → choose a Buy order.
- Current price is 1.1205; your target entry is 1.1170 — which is lower than the current price → this requires a Limit order.
- So you place a BuyLimit at 1.1170.
Set stop-loss and take-profit accordingly. The broker executes the long position automatically at 1.1170 upon price reaching that level.
SellLimit Order
Consider a downtrend in EUR/USD. You expect price to rally to trend resistance at 1.3000, reject, and continue downward. You want to sell at that resistance level.
Identify the order:
- You want to sell → choose a Sell order.
- Current price is 1.2745; your target entry is 1.3000 — which is higher than the current price → this requires a Limit order.
- So you place a SellLimit at 1.3000.
Set stop-loss and take-profit as needed. The broker opens the short position automatically at 1.3000 when price reaches it.
Why Use Pending Orders Instead of Market Orders?
After reviewing the types, a beginner might ask: If we’re confident price will move in our favor, why not enter immediately at the current market price? Let’s illustrate with an example.
EUR/USD remains range-bound. You expect a breakdown below 1.2730 and continuation downward.
You could place a SellStop at 1.2710 — triggering only if price reaches that level. Or you could sell right now at the better current price (e.g., 1.2760). But markets don’t always behave as expected. What if price bounces off the lower boundary instead of breaking down — and rallies toward the upper channel edge? Your SellStop won’t activate, and you can simply cancel it. Meanwhile, a market sell opened now would likely hit your stop-loss — generating an unnecessary loss.
Thus, pending orders provide built-in protection against false breakouts and adverse price action — helping traders avoid premature entries and emotional decisions.
Note: MetaTrader 4 prevents misplacement — e.g., it won’t allow you to set a SellStop above the current price.
No forex broker charges commissions for placing, modifying, or deleting pending orders.
Important: When your pending order triggers, execution occurs at your specified price plus the spread (for buys) or minus the spread (for sells).
Many forex strategies and trading systems rely on pending orders. Using them reduces screen time, lowers emotional stress, and supports disciplined, pre-planned trading.
FAQ
What is the difference between a BuyStop and a BuyLimit order?
A BuyStop triggers above the current market price (used for breakouts), while a BuyLimit triggers below it (used for buying on pullbacks).
Do brokers charge fees for pending orders?
No — placing, modifying, or canceling pending orders is free with all reputable Forex brokers.
Why does my SellStop order not execute even when price appears to reach the level?
Execution depends on the bid price for sell orders. If your SellStop is set at 1.2700, the bid must reach 1.2700 — not just the ask or mid-price.
