<p><strong>Pending Order</strong> is an order type in trading that is not executed immediately but rather waits for the price of an asset to reach a specified level before it becomes active. This type of order is also known as a conditional order.</p>
<p>Pending orders matter as they allow traders to set entry or exit points without constantly monitoring the market. For instance, a trader might place a <strong>Buy Stop</strong> order above the current price to enter a long position if the price breaks out, or a <strong>Sell Stop</strong> order below the current price to limit losses if the price falls. This helps in managing risk and capitalizing on opportunities even when the trader is not actively watching the market.</p>