
I like using social media facebook, I use it to get information from friends. I like to stalk my facebook friends especially who have the same interest in forex trading. Sometimes, I noticed my friend writes a post about forex trading on their facebook wall. Once there who complain about the broker requotes that often occurs when the market news. And a few other friends advised to move the execution broker directly to the market, due to the frequent requotes broker is a broker that the execution order is not directly to the market.
Oh, apparently there are many of my friends, even after a long wrestle world of forex trading, but there are still many who can not distinguish the instant execution and execution market
It helps me write this thread to make it more clear, an explanation of the differences instant execution and market execution.
Ok lets talk!
Understanding the type of execution of broker
Do you think that your meta trader account is going to do the execution immedietly after your order clicked on the enter button?
Many traders, some of my facebook friend assume that through an online broker, meta trader account connected directly on the market and the trading execution will be done by immedietly as their order.
It is important to be known, the different between the type of the execution from the broker you choosed. Because it detemines the value and the number of the transaction. Different brokers offer different types of the market execution on the market. There are two types of the market execution
1. Instant Execution
It is the execution process that run on the price that you order. The broker has to make a Certain that the exact price ordered by client is full filled. Example: If you click on the buy button on the pair of the AUDUSD on the level of 0.74569. After the broker accept the order, the order Decide that you get Reviews those exact price or not. You will get the exact price on the open orders that you sent before. If only position you get not match what you ordered (price moves against you too much) then there is an indication that the broker you trade places committing fraud.
2. Market Execution
is a process execution goes according to real market prices. Brokers who use the system such transactions would immediately throw transactions of its customers to market. On the use of this system execution order obtained much faster than real and instant execution.
Example: You click the "buy" option on GBPUSD at 1.45890 level, if the price does not change then you get the prices according to what you want GBPUSD 1.45890 But if prices change shortly after you click on this level (1.45890 becomes 1.45889) then your transaction resulted in a profit of 10 points than you planned or otherwise.
Instant Execution or market execution ??
Here are some comparison between instant execution and market execution
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1. Instant execution
-Through dealing center
-Dealing center as a liquidity provider
-Execution time> 5 seconds
-Frequent occurrence of requotes
-The level of prices determined by the dealing center
-Order fulfillment system uncertain
-Restricted trading strategy
-The transaction is not recommended during the news.
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2. Market execution
-Go directly to the forex market
-Bank as liquidity provider
-Exsekusi time of less than 1 second
-Requotes free (limited market disturbance)
-Level best price that can be obtained
-Guaranteed order fulfillment system
-Trading strategies without borders
-Free make transactions whenever desired
So, now you can decide which kind of execution the most appropriate and most beneficial for your trading, want instant execution or market execution it up to you?
How about you?![]()