Forex order execution.

There are several parameters that characterize the trading conditions provided by the broker, one of these parameters is the execution of orders, and to be more precise, its type and speed.

Execution of orders on Forex is an option in which an order is transferred from the trader’s terminal to the currency exchange, regardless of this, each order is executed within a certain time, the duration of which depends on the selected broker.

What impact does the type of execution have on trading, and what are they?

Exact execution - Instant Execution , it is also sometimes called instant, although the reasons for such a loud name are not clear, because in fact, when choosing this option, the order is simply executed at the stated price, and the speed depends on other indicators.

The advantage of Instant Execution is the ability to open orders at a specific price without deviations, but the disadvantage is that during operation there are requotes that occur at a high speed of price movement.

Therefore, it is advisable to use this type of execution in Forex strategies that do not allow deviations from the stated price, for example, Scalping.

Market execution - Market Execution differs from Instant Execution in that here your order is executed not at the order price, but at the one that currently exists in the market.

But at the same time, it is possible to independently regulate the deviation from the current quotation price. If desired, the size of such deviation can be set to 0; in this case, Market Execution will be no different from the previous option for executing Forex orders.

Speed ​​– Novice traders usually think that when choosing Instant Execution, an order is opened much faster than when choosing Market Execution.

But after trying these two options with different brokers, you become convinced that this is not the case at all. This indicator depends on many factors, the main ones being the quality of your Internet connection, the load on the broker’s servers and its line with the liquidity provider (bank or exchange).

In practice, you learn the value of the execution speed during sudden trend movements, when the order does not have time to open and potential profit is lost. At the same time, you can find out the truth only by opening an account with a brokerage company yourself and making several transactions with varying market activity.