Pending Orders and Strategy

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All,


Iask myself what are the main strategies using the Pending order, it s not clear in my mind :


  • Hedging purpose
  • Change of regime : if the market left a range, the pending order will be trigger

My point of view is not clear regarding the use of the pending order because all curent trade are optimised in a real time, What s the advantage to use pending ?


Do you have exemple of use of the pending order ?


Thanks to help me on this high level question !


UkAlgo

 
ukalgo:

All,


Iask myself what are the main strategies using the Pending order, it s not clear in my mind :


  • Hedging purpose
  • Change of regime : if the market left a range, the pending order will be trigger

My point of view is not clear regarding the use of the pending order because all curent trade are optimised in a real time, What s the advantage to use pending ?


Do you have exemple of use of the pending order ?


Thanks to help me on this high level question !


UkAlgo




Current price is 1.4500.

1. You think the price will go upwards to 1.4600 and then will turn back and falling. You place a SELL_LIMIT order at 1.4600.

2. You think if the price will go down to 1.4480 then it will fall down to 1.4200. You place a SELL_STOP order at 1.4480.

3. You think the price will go downwards to 1.4400 and then will turn back and rising. You place a BUY_LIMIT order at 1.4400.

4. You think if the price will go up to 1.4520 then it will break out to 1.4700. You place a BUY_STOP order at 1.4520.

 
ggekko:

Current price is 1.4500.

1. You think the price will go upwards to 1.4600 and then will turn back and falling. You place a SELL_LIMIT order at 1.4600.

2. You think if the price will go down to 1.4480 then it will fall down to 1.4200. You place a SELL_STOP order at 1.4480.

3. You think the price will go downwards to 1.4400 and then will turn back and rising. You place a BUY_LIMIT order at 1.4400.

4. You think if the price will go up to 1.4520 then it will break out to 1.4700. You place a BUY_STOP order at 1.4520.

Quiite Clear as explanation ! Thanks, UKAlgo

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