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Pending Trading
Pending Trading

Pending order transaction means that once the quotation reaches or exceeds the price specified by the customer after the customer specifies the order direction, number of hands and transaction target price, the customer"s instruction will be executed to complete the transaction, and the transaction price is the real-time quotation. If the pending order is within the deadline and before the transaction is not completed, the customer can also take the initiative to cancel the non transaction order. The customer will not freeze the deposit and will not affect the normal cash out operation after the pending transaction. However, when the deposit is insufficient, the pending transaction cannot be concluded.

When the price is stable: the market price is the same as the entrusted price, and finally the transaction is concluded according to the entrusted price set by the customer.

When the price fluctuates violently: the market price jumps sharply when the market is unstable, and directly skips the entrusted price. After the price is triggered, the hanging order will be traded at the next most favorable and executable price in the market.

When market conditions fluctuate (it is easy to happen in the reopening of the market / announcement of important economic data / sudden financial events), the hanging order may be executed outside the set price due to the impact of market jump. In this case, the final transaction price may be different from the required price of its own order, which may lead to greater income (the price after the jump is better than the price preset by the customer) or greater loss (the price after the jump is worse than the price preset by the customer). Therefore, investors should understand that the income and risk are two-way equal.

Comparison of advantages and disadvantages of pending transaction (example display)
Example 1: limit order - limit purchase

Pending order: the customer has established a consignment order with a purchase price of 1381.00, and the number of transactions is 1.

Transaction: after successfully establishing the entrustment order, the purchase price of gold never fell to 1381.00 before 17:43. Due to the relatively volatile market situation, there was a "short jump". The purchase price immediately jumped from 1382.76 at 17:42 to 1375.62 at 17:43, directly skipping the price of the entrustment order. Therefore, the system finally traded at the first export price of the market price of 1375.62.

Pros and cons of gold hanging order transaction: this limited price purchase order makes the customer"s transaction price $5.38 lower than the original entrusted purchase price, earning an extra $538 per hand.

Example 2: limit order - buy stop loss

Pending order: the customer holds a short order with a selling price of 1371.83 and establishes a consignment order with a buying price of 1381.00 at 17:38.

Transaction: after successfully establishing the entrustment order, the purchase price of gold never rose to 1381.00 before 17:43. Due to the relatively volatile market situation, there was a "short jump". The purchase price immediately jumped from 1380.76 at 17:42 to 1384.62 at 17:43, directly skipping the price of the entrustment order. Therefore, the system finally traded at the first export price of 1384.62 at the market price.

Pros and cons of gold hanging order transaction: this limited price purchase order makes the customer"s transaction price higher than the original entrusted purchase price by $3.62, resulting in an additional loss of $362 per hand.

Warm reminder: the maximum loss of pending transaction is limited to the customer's account balance, and SWmarkets promises that customers will be protected from the "risk of negative settlement". The above listing transaction logic is for reference only. If you have any questions, please contact the customer service.
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