29 Oct

Types of Forex market orders and order execution

admin Learn Forex Trading 0 Comments

Market Execution & Instant execution: Both market execution and instant executions are used for take entry at current market levels.

Instant Execution: As you'll see within the in the trade window, the type is selected as “Instant Execution”, and you’ll additionally see an optional most deviation option. This was the most common type of market order configuration once MT4 first came out. The trader is in a position to manage slippage on a market order by specifying the utmost tolerated pips deviation from the ask price within the case of a buy, or the bid price within the case of a sell. If the trade server is unable to fill in that deviation, your trade is rejected and a requote message is returned.

 

 

 
 
Market Execution: You’ll note that there's no most deviation field in this trade window, and the type is selected as “Market Execution”. There’s no slippage management. Once an order is placed, you’ll get the next best price the broker offer price. There’s nothing stopping the broker from slippy the trade by 10 pips or a lot of. You’ll ne'er get a requote with this kind of market order. This configuration is commonly marketed by the MT4 Forex brokers as “Straight Through the process (STP)” or maybe “ECN”. The truth is they've simply stripped of the power the ability slippage.
 
 
Pending orders
Pending order is placed (set) for the position opening. It represents a request for a currency pair buys or sell as soon as the pair reaches a current market rate, the value mentioned in the order.
 
Buy Limit: An order to open BUY entry at a lower price than the current market asks price value. It is impossible to set buy limit order above the current market ask price value.
 
Buy Stop: An order to open BUY entry at a higher price than the current market ask price value, it is impossible to set buy stop order below the current market ask price value.
 
Sell Limit: An order to open SELL entry at a higher price than the current market bid price value, it is impossible to set sell limit order below the current market bid price value
 
Sell Stop: An order to open SELL entry at a lower price than the current market bid price value, it is impossible to set sell stop order above the current market bid price value.
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