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Order Execution Types

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1Order Execution Types Empty Order Execution Types Thu Aug 20, 2015 7:51 pm


Order Execution Types

Instant Execution

With this execution type the broker undertakes to carry out the order at the price set by the trader or not to execute the order at all. The client can set a slippage or a maximum permissible price deviation or at which the order can be executed. In the event that the price has changed during the processing request but still remained within the set slippage, the order will be executed with a price correction. In the event that the price has gone beyond the limits of the slippage corridor or the slippage parameter has not been set, the order will be rejected and the trader will receive a “requote” price change message. In such a situation the client can accept the new price and the order will be executed or he/she can refuse the order.

An obvious advantage of Instant Execution is the opportunity to enter the market at a fixed price, which is of great importance for some trading strategies. Another advantage is the opportunity to set Take Profit and Stop Loss parameters at the moment of sending the order.

The main disadvantage of Instant Execution is requotes, the number of which increases or decreases depending on the volatility of the market.
Market Execution

With this execution type practically any order from the trader will be executed at the current price on the market at the moment of order processing. The price can be either higher or lower than the one the trader can see in the window of the terminal. As a rule the trader accesses the market faster when using Market Execution.

The main advantage of this execution type is the opportunity for 100% market access.

Its disadvantage is a high risk of a lossmaking position when the market is highly volatile, when the price may strongly fluctuate during short periods of time. Another disadvantage of Market Execution is the inability to set Take Profit and Stop Loss parameters since it cannot be known beforehand at what price the order will be executed.

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