What is Pending Order?
A pending order is an instruction to buy or sell an instrument when market price reaches a certain level specified by the trader. If market conditions are steady, the order will be executed at the requested price once the order is triggered. If a market is very volatile, the specific price requested by the client may not be available; and hence the order will be executed at the best price available at that time close to client’s requested price.
How Pending Order Works?
1If market conditions are steady, the order will be executed as a market order at the requested price.
2If a market is very volatile, the requested price may not be available; and hence the order will be executed at the best price available at that time close to client’s requested price. Slippage tends to occur when market is illiquid or volatile, particularly in the wake of market openings, important economic data releases, unexpected events and other factors. If the execution price is better than the requested price, it is ‘positive slippage’. In contrast, if the execution price is worse than the requested price it is referred to as ‘negative slippage’. The probability of winning or losing is the same.
Features of Pending Orders
Greater profits - price skipping the requsted take profit
Increased profits out of positive slippage are all owned by investors
Greater losses - price skipping the requested stop loss
The maximum losses will not exceed client account balance
The client may choose a specific date in the future until which the order shall remain ‘live’ and pending for execution. If the order is not triggered during this pre-determined timeframe before market closes, it shall be deleted from the system.
The minimum and maximum lots of pending orders are 0.01lot and 40lots respectively. If your margin level does not meet our requirement, though market price reaches your requested price, the pending order will not be executed and will be cancelled immediately.
Remark: Acetop reserves the right of final interpretation for the first price after the gap.