Whether you're dealing with a pending order, Take Profit, or Stop Loss, it's important to consider the impact of the spread.
MetaTrader has 4 main types of pending orders: Buy Stop, Sell Stop, Buy Limit, and Sell Limit.
Buy Stop — an order to buy at a price higher than the current market price. Placing such an order makes sense if you want to wait for the price to rise above a certain level (for example, a resistance level) and only then open a buy trade expecting the price to continue rising.
Sell Stop — an order to sell at a price lower than the current market price.
Placing such an order makes sense if you want to wait for the price to fall below a certain level (for example, a support level) and only then execute a sell trade expecting the price to continue falling.
Buy Limit — an order to buy at a price lower than the current market price.
Placing such an order makes sense if you want to wait for the price to fall and then bounce off a certain level (for example, a support level) and only then execute a buy trade expecting the price to continue rising.
Sell Limit — an order to sell at a price higher than the current market price.
Placing such an order makes sense if you want to wait for the price to rise and then bounce off a certain level (for example, a resistance level) and only then execute a sell trade expecting the price to continue falling.
When placing a pending order, it is also necessary to consider whether there is sufficient margin. If the set price is reached but there is not enough margin to open the position, the pending order will be automatically deleted.
Additionally, in case of important data releases or unexpected events in the market, the price may change especially sharply, jumping over the conditions set.
In such situations, trading orders (pending orders, Take Profit, Stop Loss) will be executed at the most favorable market price, but the trade price may differ from the previously set conditions.