A pending order will open when the conditions you set when placing it occur. It's simple. Let me show you how it works.
Let's say I'd like to open a pending order for Renault SA stock at Paris Euronext. I want to take a short position once the stock price reaches a certain level.
Once I open a "New order" window, I switch the tab from "MARKET" to "PENDING" and from "BUY" to "SELL".
Now let's move to the lower part of the "New order" window. I assume that the stock will go down after climbing to the price of €70. I type in this value into the "Price" field.
I am writing this article at 1:00 PM and set the expiry date for an hour ahead. If my pending order conditions are not met - Renault SA stock won’t reach €70 - within 1 hour my order will expire.
Additionally, I set "Take Profit" at the stock price of €60 and "Stop Loss" at the price of €80. Which makes it a simple deal - I either earn or loose €100.
I click "Submit" button and wait for my scenario to happen.
As you can see pending orders are very convenient as you don’t have to observe all the charts in real time.