Instant execution is a quoting method that’s generally applied by brokerages operating a dealing desk. What happens with instant execution is that traders are executed at the exact price displayed on the screen, while also allowing for stop loss and take profit levels before entering the market.
Compared to market execution, which will fill your order at the next available price, no matter how big the slippage is, instant execution will not fill your order if it is not available.
So the basic characteristics of this quoting method are:
- You can set your stop loss and take profit orders when entering the market;
- You will be filled at the requested price if it is still available. If not -> Requote;
- The execution of your order depends on the market;
- Your access to the market is indirect, through the dealer;
- The price is provided by the broker.
Each execution type has its own pros and cons, and it’s up to you to pick something that fits your trading style. If exact filling price is important to your trading style, and you generally trade on smaller timeframes, instant execution may be more suitable for you.
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