There are still a significant number of currency traders who do not have a full understanding of the use of the pending orders. In the meantime, this is a pretty useful feature on the Olymp Trade platform. When specific conditions are met, it will automatically open and close a trading position.
Imagine that you are trading EURUSD currency pair. Your technical analysis results in the conviction the price will continue to drop until it reaches the support level and reverses afterward.
Despite your analysis, the price stays up. You can either wait for the price to drop and open the position after it reaches the support, or you can set a pending order.
It means that you can place an order that will open the trade for you once the price drops to the support level.
I would rather take the second choice. And this is the purpose of this guide. To show you how to use the pending orders at Olymp Trade.
How to place a pending order on the Olymp Trade platform
You have to be logged in to the Olymp Trade account. Set your chart first, choose the asset and candles period. To use the pending orders feature you need to turn it on in the platform settings.
You will see the “Order” button on the right side of the Olymp Trade interface just below the green and red buttons. When you click on it you will then have two choices. One is to open the order by time. You choose the asset, the amount you want to put in this particular trade, Take Profit and Stop Loss. And of course the time. This is crucial here. The pending order will be automatically opened at the chosen time.
The problem here is that it is practically impossible to predict what level the price will achieve at a specific time in the future. And this is a serious reason why you should rather avoid this approach.
The second way to open the pending order is to do it by asset price. Similarly, you choose the asset, the invested amount, Take Profit, and Stop Loss. But instead of defining the time, you determine the asset price at which you wish the trade to start.
This approach is fully recommended because you can predict that the price will achieve a predetermined level in the future. The support and resistance levels can serve as the price levels for the pending orders. So when you place a pending order the position will open automatically when it reaches the level you have set.
Benefits of placing the pending orders at Olymp Trade
Thanks to the pending orders feature the trading operation can be partially automated. This gives you more free time that can be for example used to accurately analyze the market.
In trading currency pairs, the points of entry are not the present price, but the price which is lower or higher than the present one. Using the pending orders takes some pressure off your shoulders. You do not have to carefully follow the price fluctuations, which by the way could trigger emotional trading, but only set the price level at which the position will be opened automatically.
Moreover, your trading continues even without your presence at the computer desk. With the pending orders, the trades remain open even if you do not keep track of what is happening on the chart.
Exemplary pending order request
As I mentioned before, it is best to open the pending orders by asset price. I chose the asset, which is the EURUSD currency pair. I noticed that the price level of 1.10848 formed the resistance during the uptrend. Then the price broke this level and continued upward. I speculate that the previous resistance level will form the support during the upcoming downtrend.
I decided my position would be opened when the price reaches the level of 1.10848. I used is 100 demo currency. Note that there is a possibility to use multiplier here (window number 3 in the above picture.) I set it for 100, which means that my investment amount equals 100×100, which gives 10000. Then, I can set the parameters for automatic closing.
Take Profit (number 4) specifies at what profit the transaction will be automatically closed. Here, if I earn 200, the trade will end. Stop Loss, on the other hand, determines what loss are you ready to take. After that amount is lost, the trade will be closed and you will not lose more than the specified sum. Here the amount is 100. So if the price goes in the opposite direction and the position loses 100, it will be automatically closed. The last step is to choose the direction (number 6), do you want to buy or sell. I decided to go for the up position.
Pros and Cons👍👎
- 💼 Automates aspects of trading strategy
- 🎯 Can be more precise than manual entry
- ⏱️ Frees up time for other tasks
- 🛠️ Easy to adjust or cancel orders
- 🔮 Difficult to predict exact timing of price levels
- 📈 May require additional monitoring and adjustments
Key Components of Pending Orders
|The financial instrument being traded
|Amount of capital allocated to the trade
|The predetermined profit level at which the trade will automatically close
|The predetermined loss level at which the trade will automatically close
|The specific asset price at which the pending order will be executed
Introducing changes to the pending orders at Olymp Trade
Olymp Trade ensures that you can cancel the pending order at any time. So if you think this is the best choice in a given situation, just press the “Cancel” button.
Another good thing about the pending orders on the Olymp Trade platform is that you can adjust the take profit and stop loss along the way when your order got filled. You can do it in the “trades” window on the right side of the interface.
On the chart, you will see all the lines. The current price, your opening quote, the take profit, and stop-loss levels.
The pending orders feature is a great possibility to save your time and open the position automatically in the future. You will find it while trading currencies, CFDs, stocks, and other instruments as well.
You should go to the Olymp Trade practice account and try the pending orders feature. Do not forget to share your thoughts with us in the comments section.
Wish you profitable trading!
Q&A on Pending Orders
- Q: How can pending orders help me in my trading strategy?
- A: Pending orders can automate parts of your trading strategy, allowing trades to be executed at specific price levels without constant monitoring.
- Q: What is the difference between opening a pending order by time and by asset price?
- A: Opening a pending order by time executes the trade at a specific time, while opening it by asset price executes the trade when the asset reaches a specific price. The latter is generally more reliable.
- Q: Can I adjust my pending orders after placing them?
- A: Yes, Olymp Trade allows you to adjust or cancel pending orders at any time before they are executed.
- Q: Do I need to set both Take Profit and Stop Loss for my pending orders?
- A: While not required, setting both Take Profit and Stop Loss levels can help manage risk and lock in profits automatically.
- Q: How can I ensure my pending orders are properly set?
- A: Double-check your settings and monitor your trades to ensure your pending orders are working as intended. Adjust or cancel orders if needed.
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