Market vs Pending Orders
In this lesson, we will explore the types of orders available to traders.
What is an order?
An order is a set of instructions sent using a broker’s MT4 platform to buy or sell any given
trading instrument. It is the command to start or stop trading. You can enter a position
by buying or selling a trading instrument and exit a position by closing an existing position.
Order types
Orders fall into two categories, based on their activation timeframe:
1. Market orders: Market orders are orders to execute a position instantly at the best
available price. You can enter or close a position instantly at the current market price with
just a push of a button.
2. Pending orders: Pending orders are not executed immediately. Instead, they are executed
when certain conditions are met. For example, a pending order could be set to start buying
EUR/USD once the instrument reaches a specific price. Pending orders can also be used to
close existing positions.
In our next lesson, we will look closely at the different types of pending orders.