Contents
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.
Key Takeaways🔑
| →Pending orders allow traders to open positions automatically based on specific price conditions. |
| →Commonly used by traders who rely on price action and candlestick patterns, pending orders can help manage risk and improve entry points. |
| →IQ Option platform offers user-friendly tools to create, modify, or cancel pending orders with ease. |
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.
When and how to use orders at the opening to trade CFDs on IQ Option
A trader's job is to enter the market at some certain moments. This can be done manually or automatically. Of course, you have to know when to use which possibility.
Automatic positions can be opened for options in two ways. You can set a preferable price the asset has to reach for the trade to be open. You can also set the time at which the transaction will start.
When you are trading CFDs on IQ Option, you have yet another way to open trading position automatically. You can use orders at opening.
Trading CFDs
The reason why you can use such an option only with CFDs is that the stocks open and close at some specific hour and cannot be traded all the time without any pause. There is the time of inactivity after which they will be open again.
CFDs for US stocks are traded only through US business hours. Moreover, the market is closed over the weekends. This makes the opening price of the assets impossible to predict. The gap can be utilised to create leverage that is against the market.
Pros and Cons of Using Pending Orders 😃🙁
- Pros:
- Improves entry points and risk management
- Automates trading based on predetermined conditions
- Allows traders to take advantage of price action and candlestick patterns
- Can be easily created, modified, or canceled on IQ Option
- Cons:
- Requires a good understanding of price action and technical analysis
- May not always be executed at the exact desired price
- Not suitable for all trading strategies
| Common Pending Order Types | Description |
|---|---|
| Buy Stop Order | An order to buy an asset at a price higher than the current market price. |
| Sell Stop Order | An order to sell an asset at a price lower than the current market price. |
| Buy Limit Order | An order to buy an asset at a specified price or lower. |
| Sell Limit Order | An order to sell an asset at a specified price or higher. |
Orders at opening on IQ Option
The gap we are talking about creates various possibilities the traders can take advantage of. Bear in mind, however, it is a truly difficult task to evaluate the price at which the market will open in the future or how the price will behave afterwards. So use orders at opening with care.
Anyway, here we are. You have requested an order at opening. You will receive a confirmation of this pending order.
The market is closed at the moment, but you can view all the orders in the total portfolio on the IQ Option platform. There are the orders that are active and the pending ones.
Once the market is opened again, your order will be filled and the platform will open trading position automatically.
Orders at opening are extremely useful if you want to participate in the full price movement. For example, you have heard that Zoom have the potential to grow because people use it during the time of COVID lockdown. You don't want to miss that opportunity and you are able to place an order at opening to buy CFD when the US stock market will open.
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.
Short Q&A: Using Pending Orders on IQ Option
- Q1: How do pending orders help improve my trading?
- A1: Pending orders allow you to set specific price conditions for entering trades, which can lead to better entry points and improved risk management.
- Q2: Can I modify a pending order after placing it?
- A2: Yes, on IQ Option, you can easily modify a pending order by hovering over the position on the chart, clicking the settings button, and changing the available parameters.
- Q3: How do I cancel a pending order?
- A3: To cancel a pending order on IQ Option, hover over the position on the chart and click the ‘X' button next to the settings button.
- Q4: Are pending orders suitable for all trading strategies?
- A4: Pending orders are not suitable for all trading strategies, as they require a good understanding of price action and technical analysis. They are best suited for traders who rely on price action and candlestick patterns.
- Q5: How do I create a new pending order on IQ Option?
- A5: Click on the ‘Purchase at…' button below the sell button on the right-hand side menu, set the desired price and direction, and confirm the order. A green dotted line (buy) or a red dotted line (sell) will indicate the opening price level.