Forex trading is a popular way of making money online, and it involves buying and selling currencies. One of the key strategies in forex trading is the use of pending orders. A pending order is an order to buy or sell a currency pair at a specific price in the future. In this article, we will explain how to do a pending sale on forex.
Step 1: Choose the currency pair
The first step in placing a pending sale order is to choose the currency pair you want to trade. The currency pair you choose will depend on your analysis of the market and your trading strategy. For example, if you believe that the US dollar will weaken against the euro, you may choose to trade the EUR/USD currency pair.
Step 2: Select the pending order type
Once you have chosen the currency pair, you need to select the pending order type. There are four types of pending orders in forex trading:
– Buy Limit: This is an order to buy a currency pair at a price lower than the current market price.
– Sell Limit: This is an order to sell a currency pair at a price higher than the current market price.
– Buy Stop: This is an order to buy a currency pair at a price higher than the current market price.
– Sell Stop: This is an order to sell a currency pair at a price lower than the current market price.
For a pending sale order, you will select the Sell Limit option.
Step 3: Set the order price
Once you have selected the Sell Limit option, you need to set the order price. The order price is the price at which you want to sell the currency pair. You will need to set the order price based on your analysis of the market and your trading strategy. For example, if you believe that the EUR/USD currency pair will reach a resistance level at 1.2000, you may set your Sell Limit order at 1.2000.
Step 4: Set the expiration date
Once you have set the order price, you need to set the expiration date. The expiration date is the date on which the pending order will be cancelled if it is not executed. You can set the expiration date to a specific date and time or choose the “Good Till Cancelled” option, which means the order will remain active until you cancel it.
Step 5: Set the lot size
The lot size is the size of the trade you want to make. You can choose the lot size based on your trading strategy and risk management. A lot size of 0.01 is equal to 1000 units of the currency pair, while a lot size of 1 is equal to 100,000 units of the currency pair.
Step 6: Place the order
Once you have set all the parameters for your pending sale order, you can place the order. The pending order will be displayed in your trading platform, and it will be executed automatically if the market price reaches the order price.
In conclusion, a pending sale order is a useful tool in forex trading that allows you to sell a currency pair at a specific price in the future. To do a pending sale on forex, you need to choose the currency pair, select the Sell Limit option, set the order price, set the expiration date, set the lot size, and place the order. It is important to remember that forex trading involves risks, and you should always use proper risk management strategies to protect your capital.
