A good number of forex traders on IQ Option don't understand how to use forex pending orders. This useful feature makes it easy for the platform to automatically open a trade position once certain conditions are met.
Even better, it will also automatically close open positions once certain conditions are met. Consider this scenario. You're trading the EUR/USD currency pair. From your technical analysis, you predict that the price keeps falling to a support range before bouncing back up.
However, the price is still up. Now you have two options. First, you can wait until the price drops to the support zone before entering your trade. Second, you can place a pending order.
These are commands set within your trading interface that once the price reaches the support zone the platform will automatically open a buy position. Given both choices I'd take the latter. This guide will teach you how to open pending orders when trading forex on IQ Option.
Opening a pending order on IQ Option
Once you've logged into your iqforex trading account, set up a 5 minutes candles forex chart. For purposes of this guide, I'll also use Bollinger Bands. This indicator makes it easy to identify possible trend reversals (space between bands widens). Pending orders can be opened in two ways. The first way to open a pending order is by time. That is, the IQ Option platform will automatically enter a trade position at some time in the future.
The problem with this approach is that you can never know where the prices will be at any given time in the future. So it's advisable to avoid this method.
The second and recommended way to open a pending order is through price. That is, the platform will automatically enter the trade position once the asset's price reaches a specific level.
The good thing about this approach is that you can easily predict that an asset's price will reach a certain point based on previous price movements.
Advantages of using pending orders on IQ Option
Forex pending orders partially automate the trading process. This leaves you with more time to analyze the charts. When trading forex, the trade entry point isn't the current price.
It is a price that's higher or lower than the current price. Forex pending orders allow you to enter position at a price point of your choosing. This removes the pressure of having to keep track of price movements which could lead to emotional trading.
Partial automation allows you to keep trades open even when you're not physically working on your trading interface.
Example for opening a pending order on IQ Option
Let's use the EUR/USD chart above. Notice the price point of 1.13762. During the uptrend, this price point formed a strong resistance where price consolidation occurred. Once the price broke out of this level the uptrend continued. I would expect prices to bounce off this price point during the downtrend.
So I'll place my forex pending order (buy) at the 1.13762 price point. But before going into the details, let's take a look at the steps to take. The first step involves choosing the amount to invest in this trade. Step two involves selecting the multiplier. This is simply the leverage applied on this trade.
So when trading with $10 and a leverage of X300, it's like I'm trading with $3000. The third step involves setting the auto close parameters. This includes setting the take profit and stop loss. The +100% take profit simply means that the platform should automatically close the trade when profits are 100%.
The -95% stop loss simply means that the platform should automatically close the trade if the trade goes against me and the investment drops by 5%.
How do I make a pending order?
Now that I've decided to enter a buy position once the price drops to 1.13762, how do I do it? First, I'll hover my cursor along the prices (left side of your trading chart) until a small black box with 1.13762 appears.
Then I'll click once. Next, I'll click on the “Buy” button. Once this is done, IQ Option will send a notification on my trading interface indicating the pending position has been created.
Now, what happens when the pending position has been opened? IQ Option will send a notification indicating that the trade entry has been executed. If you look at the chart below, there are 3 different points.
Point 1 shows the price point where forex pending order will be triggered. Point 2 shows the price the chart was reading when I entered the pending order command.
Point 3 shows the point where the take profit and the auto close feature will be triggered. That is, the price must rise from point 1 to point 3 for the take profit feature to automatically close the trade.
Changing the settings of forex pending order on IQ Option
One great thing about IQ Option pending orders is that you can change their settings. You can increase the trade amount – if the trade goes your way and you want to increase profit. You can also adjust the take profit and stop loss percentage (or amount).
You can also apply the trailing stop as well as set the trade to use the available account balance (not just the amount you invested in the trade). To make these changes, simply click on the pending order. Your chart should look like the one below. Once all adjustments are made, you should click apply to save the new settings. Note: You can also close the forex pending order manually. Simply click on the transactions tab on the left of your trading interface. Click on the pending orders feature and then select close for the pending orders you want to terminate.
Pending orders are a good way to open future trades on IQ Option. This feature is available for forex, stocks, CFDs and other instruments.
Now that you've learned how to open forex pending orders on IQ Option, try them out on your practice account. We'd love to hear about your results in the comments section below.
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