Order execution refers to the process of completing a buy or sell order in the market. Various execution types offer traders flexibility and control over how their trades are processed, helping them achieve specific investment goals and manage risk. In this article, we will explore the most common order execution types and how they can be utilized in trading. At FXTM, we offer one type of order execution - Market Execution.
Market execution
Orders are executed at the best current available price. No requote is given as the trade will still be executed at the best available price, even if it has changed from the price shown on the order window or requested price. The order execution type on our Advantage and Advantage Plus is market execution.
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Execution types explained
To better explain how each approach works, consider the order execution mechanism using the following example:
When a trader wants to buy EURUSD, they open a BUY position. Let's assume the trader's requested price is at 1.18000. This price may change during the processing, to either a higher or lower price. Let's say the price has changed to 1.18500