Top Forex Brokers – Instant execution is an execution process that runs at the price we want, the process is indeed fast, of course as the name implies, namely instant execution. However, brokers that use this type of execution are dealer brokers who still use a dealing desk or a very large dealing role. Because when a position order, the order will go to dealing first. After dealing approves the position order, we will get the price we want (as clicked).
Market execution is an execution process that runs according to market prices. This type of execution does not involve dealing in orders that we place down to liquidity and the market. In terms of execution speed, market execution is much faster than instant execution.
If the price we order does not match the price we get, then we get the price in the market without any new quotes or requotes. The price you get is not only when you want to place a position order, but prices for SL, TP and pending orders.
The market and instant execution types have their own advantages and disadvantages, we are as traders, decide to use an account that has an instant or market type of execution. Here is a comparison between market execution vs instant execution:
Instant execution
- Order execution takes 3-5 seconds
- Requotes
- Execution depends on the market
- Access to the market through dealers
- Prices are provided by the broker
- There is no chance to open an order at a better price
- Trading strategies (scalping, hedging, news trading, using EAs) are limited
Market execution
- Order execution takes a fraction of a second
- There are no requotes
- Guaranteed execution
- Direct access to the market
- Prices are provided directly from the market
- There is always an opportunity to open an order at a better price
- There are no restrictions on trading strategies (scalping, hedging, trading news, using EAs)
Now you understand what instant execution and market execution are, which one does your forex broker use ? the decision to use the order type between the two is according to your trading needs.
