Help CenterA "Pending Order" is a type of advance trading order that traders use to automatically place buy or sell orders in the future when certain market conditions are met. It helps reduce the risk of errors that may occur when the market moves, whether up or down, during times when traders are not actively monitoring price charts or sitting in front of their screens.
For investing with Woxa, you can set the rate for both buying and selling instances.
Example: You want to buy BCH/USD, which is currently trading at a market price of $230.64. You believe that in the future, the price will drop to $220.00 and then increase steadily. Therefore, you are considering buying at the rate of $220 to generate a profit.
Advantages and Disadvantages.
Advantages :
- Time Control: Using Pending Orders allows you to schedule your trades in advance, enabling you to prepare for market movements with confidence.
- Risk Reduction: Utilizing Pending Orders helps mitigate the risks associated with uncertain market conditions. You can set target prices for buying or selling, thus safeguarding against unnecessary losses.
- Convenience: Using Pending Orders eliminates the need for continuous market monitoring while retaining control over your trades.
Disadvantages :
- No Guarantee of Execution as Planned: There are instances where the price of an asset or commodity can change rapidly when it's time to execute a Pending Order. This can result in the order not being executed as anticipated.
- Uncontrollable Factors: Using Pending Orders may not guarantee that your order will be executed at your desired price due to other factors such as market volatility or price controls imposed by the exchange.
- Complexity: Utilizing Pending Orders can be complex, especially for individuals who are not familiar with them. It may require time to learn and understand how to use them correctly.
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