What is pending order’
A conditional order is an order that includes one or more of these criteria. As a rule, pending orders are more complex types used in the advanced trading strategies.
Breaking down the ‘conditional order’
Conditional orders can be used by all types of traders. Discount brokerage companies offer basic conditions, such as limit, stop and stop-limit. More advanced traders will seek to place conditional orders with wider criteria.
Conditional orders usually refer to the default orders in which the investor has certain levels demanded by price or time. Market orders are one of the most common orders for beginners. These orders are not the criteria price and posted at the first available price after the order.
Standard Conditional Orders
Brokerage firms and brokerage discounts offer some standard conditional orders for traders with specific criteria. These orders tend to be limit, stop and stop-limit. Almost all of the trading platforms will have these standard conditional order types available to client accounts.
More Conditional Orders
Conditional orders based on the concept of limit, stop and stop-limit. They also layer additional criteria to trade, which can help an advanced trader in the deployment of a broad risk management.
With advanced trading platforms like interactive brokers offer these additional conditional orders. These conditional orders are also available through some of the most popular platforms for technical analysis, such as: metastock’a, worden TC2000, temporary coincidence, ninjatrader, Wave59 pro2, EquityFeed station, ProfitSource, VectorVest and MarketClub Ino. (For more on these platforms, see also: the best technical analysis trading software)
Conditional orders usually include several variables in the conditional submission of the order. Variables the order may be based on price, time, volume, margin cushion, interest rates, and more. Different combinations of variables can be used. Traders can also use operators to define variables such as equal, more or less.
Specific types of pending orders can also exist as one-cancels-other (oco) orders or order-send order (OSO). In CCA, several conditional orders can be placed with other orders cancelled once has been executed. In the CCA the execution of the order is more orders. (See. also: Introduction to order types: Conditional orders)
Additional conditional orders can be used by traders and technical analysts for a wide range of trading strategies. These orders can help the technical analyst to provide profit at a given price. They can also be used by portfolio managers as risk management.
In one simple example, consider a technical analyst after the stock with the price approaches the support line on the chart Bollinger band. If they feel that reversal is likely on the level of support they can Institute a conditional order to buy stock options. This conditional order will be primarily based on price. Thus, in order to buy an option at a particular price when the price of the underlying asset reaches a certain price.