Instant execution VS Market execution
Posted by Homi .M on 22 November 2012 03:56 PM
Instant execution Instant execution means that when you click the button to place your trade, your online Forex broker will immediately fill your trade at the current market price. If it cannot be filled, then a ‘requote’ will be issued with the new price and you will have an opportunity to either place the trade at the new price or not to trade. With instant execution, traders have the ability to set "Stop Losses" and "Take Profit" orders prior to the execution.
In contrast, if your Forex broker uses market execution, when you click the button to place your trade, it goes to the open market where it is then filled at the next available price. With market execution, there is a delay before the trade is placed and then it is filled. The implication of this is that you may pay a different price to the price you saw when you clicked the button to place the trade. It may go up or it may go down.