Most traders on IQ Option use market orders to buy or sell assets at the current price. Not many people know that you can open trading position automatically. Our short guide will tell you when and how to use pending orders on the IQ Option platform.
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What is a pending order?
By seeing the price behaviour of an asset you can make an immediate decision to take a position e.g. when your trading signal appears. In that case you use a current market price order or in other words a market order.
It is sometimes the case that you want to open a position at a specific price. For example, you would buy EURUSD when the price reaches the level of 1.0230. You could sit in front of the chart and wait until the price reaches that level. Or you can place a pending order. A pending order allows you to open trading position automatically based on the conditions you enter. These conditions are the price and direction of the trade.
When is it worth using a pending order?
Pending orders are most commonly used by those who use price action and candlestick patterns.
How to open trading position automatically on support/resistance level
For example, if you have identified an important support level on EURUSD at 1.0090 on the chart and the price is currently above this support level, you could place a pending order to buy at 1.0090 on the expectation that the market will bounce back from this level.
How to open trading position automatically based on a candlestick pattern
Another example. On the AUDUSD H4 chart you observe a bearish engulfing pattern. The downside candle covers the previous candle probably ending the preceding uptrend. The low of the engulfing candle is 0.7520. You would like to enter a sell position when the market breaks downwards through the observed candlestick pattern. You can use a pending sell order below the low of the pattern, e.g. at 0.7518. 2 pips offset is sufficient.
Creating new pending order on IQ Option
Using the IQ Option platform you can open trading position automatically. This can be very helpful if you trade using tools like for example support levels. In the menu on the right-hand side just below the sell button click on the ‘Purchase at…' button.
You can either choose the current market price of an asset which is set by default or by clicking on the plus or minus buttons to indicate any other value at which you feel comfortable having the position opened automatically.
After setting the price of an asset for automatic opening of the position click buy or sell to indicate the direction of a new position. Depending on the direction of a new position, you will see a green dotted line for buy or a red dotted line for sell.
That will be indicating the opening price level. Once the price reaches the indicated level the position also called pending order will be opened automatically.
Modifying pending orders on IQ Option platform
In order to modify the pending order at IQ Option, mouse over the pending position on the chart, click on the settings button and change the available parameters.
If you wish to cancel your order. Click on the ‘X' button located next to the settings button. If you would like to disable the automatic opening feature simply click on the close X button.
Today you have learned a method of how to open trading positions automatically. In the title, we somewhat perversely indicated that this is a guide for lazy traders. Lazy traders here mean those who do not want to wait until the price reaches the right level to open a position.
In fact, such laziness is nothing bad, and using pending orders is a very good practice. These orders allow for a thorough analysis of the situation and early identification of where we expect a good market entry to occur. Be sure to try out pending orders on the IQ Option platform and see how opening a trading position automatically can make your trade easier. Be sure to share your observations in the comments below.
We wish you a great trading experience.