Forex order execution.

There are several parameters that characterize the trading conditions provided by a broker. One of these parameters is order execution, or more precisely, its type and speed.

Forex order execution is the method by which orders are transmitted from a trader's terminal to the currency exchange. Regardless of execution, each order is executed within a specified time, the duration of which depends on the chosen broker.

How does the execution type affect trading, and what types are available?

Instant Execution , " ," is sometimes referred to as "instant execution." However, the rationale for this catchy name is unclear. When choosing this option, the order is simply executed at the specified price, and the speed depends on other factors.

The advantage of Instant Execution is the ability to open orders at a specific price without deviations. Its disadvantage is the possibility of requotes , which occur during high price movements.

, this execution type is recommended for Forex strategies that do not allow deviations from the specified price, such as scalping.

Market Execution differs from Instant Execution in that your order is executed not at the bid price, but at the current market price. However, you can manually adjust the deviation from the current quoted price.

If desired, the deviation can be set to 0; in this case, Market Execution will be no different from the previous Forex order execution option.

Speed ​​– Beginner traders often think that Instant Execution opens orders much faster than Market Execution. However, after trying these two options with different brokers, you'll see that this isn't the case.

This metric depends on many factors, the main ones being the quality of your internet connection, the load on the broker's servers, and their connection with the liquidity provider (bank or exchange).

In practice, you'll only learn the value of execution speed during sharp trend movements, when orders don't open quickly enough and potential profits are lost. However, the only way to truly understand this is to open an account with a brokerage company and execute several trades under varying market conditions.