The execution order is very important for forex traders, especially its quality. There are two types of execution, Market Execution and Instant Execution. What is the difference between the two?
Each type has its own features and is suitable for different trading strategies and goals. The type of execution is part of the trading conditions given by the broker. Some brokers offer both types of execution orders for his clients in the different account types.
Instant Execution means that an order will be executed directly at the price in question. If the current price does not match the price is due to the fluctuation of the market order processing time, then an order could not be executed. In other words, requotes can happen. Traders get notifications with new quotes, because the order will not be opened/closed without the approval of a trader will be a certain price. Market Execution is a type of execution instead. This type is faster and the execution of any order is assured. Let's now examine these methods.
Market Execution means good set up trading process as well as trading can be done immediately because of the absence of requotes. Under no circumstances, the order remains open on the current market price. However, such slippages could occur when market volatility is high, which means the order will be executed, but the new price level. The new market price can be higher or lower than the price which the trader wants. Even so, traders always have the opportunity to close a position in profit. This method is ideal for traders who established trading strategies from having entered the market, rather than the accuracy of the prices.
For all trading account, JustForex offers Market Execution. Orders are executed at the best price from leading liquidity providers. The liquidity of the company is provided by 18 of the world's largest banks.
Most traders have a Market Execution, because this method has several benefits:
- Speed of execution is very high-order execution requires only a few seconds and only dependent on the connection speed.
- No requotes-oder will be closed at the current market price, even if there is a change of price quotations.
- Direct access to the forex market-all orders are transferred to the interbank market. So, the price listed by the market, not by the broker.
- There are no restrictions on trading strategy. All Market Execution allow the use of any trading strategy, ranging from automated trading to hedging (auto trading). Although, this type of execution is more suitable for open transactions, medium-term and long-term.
- Accurate quotations, pricing decimal 5 system available for all financial instruments.
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