Execution of orders is an important stage in Forex trading. In simple words, the order execution is at what price you buy/sell a particular currency. There are two execution types: Market and Instant. In the first case, you literally tell the broker that you are ready to buy at any price that is currently available. In the second case, you want to buy only at a specified or more favorable price. Let’s consider these types in more detail.
Instant Execution is the method of order execution where the order is executed exactly at the indicated price or may not be executed due to sharp price changes during the process of placing an order. Order will not be opened/closed without the trader’s consent to a certain price. In other words, requotes may take place. Beginners usually prefer this execution type, for whom exact execution is important.
Market Execution is opposite to Instant. It is faster and is characterized by guaranteed order execution. Orders are opened at current market prices in any case. It’s worth noting that slippages can occur during high market volatility. That is, the order will be executed but at a new price. The market price may be either lower or higher than the price indicated. However, a trader always has an opportunity to close order with profit. Traders whose priority is to open a position choose Market Execution.
To make it clear on what principle each method works, let's consider the mechanism of order execution using the following example: a trader wants to buy EUR/USD, he opens a position to buy. During the processing, the price may change – decrease or rise. At Instant Execution, the broker sends a requote (repeated request) with new quotes. The trader decides whether he wants to buy currency at this price or not. At Market Execution, a transaction is executed immediately at a changed price without confirmation of the trader.
JustForex offers its clients the Market execution of the orders to make the trading process pleasant and comfortable. This type of execution allows trader to control the process of trading and make decisions at that very moment, when every second counts, and the delay costs too much.