Instant Execution – translates from English as «instant entry into the market», but in reality, a warrant of this type is only a principle in which a broker executes traders bid exactly at the specified price. Until the quotations reach the target value, the warrant remains in a «sleep» state.
Order Instant Execution: Requote
The very name of the order «instant» is not related to the real meaning of the transaction activation process itself. In fact, the speed of such an request depends entirely on the broker and how faithfully it dealing policy. In a real trading environment, once formed, an instant warrant may not enter the market for long enough and should be perceived as «accurate» rather than «fast».
After the trader send a request, a comment will appear in the terminal window that the «Order has been accepted», then the information will be replaced by the «Order in processing». From this point on, the broker issues an application for the inter-market. The procedure can take a few seconds to half a minute, sometimes longer.
At the same time quotations change, and if they leave the range of the specified deviation, the order will not be executed and it will be notified that prices have changed – requote. Then the warrant will have to be corrected – set new values for entry.
Order Instant Execution: Slippage
By filling in the warrant, the trader has the right to set slippage – the maximum deviation of the price for execution. If the application is processed and the price has changed and has gone beyond slippage, the trader will be notified of the requote. If he agrees with the new price, the warrant is activated, if he does not agree, he may refuse to enter. When the price changes at the time of processing the warrant, but remains within the slippage or this corridor has not been set, the entry into the market will be made with a slight change.
If prices change within against the intended position, the warrant will be executed with benefit for the broker. In the opposite situation, the warrant may be executed with benefit for the trader or «hang» because the new price is not profitable to the broker. In practice, in this case, execution takes place at a price request. It is the real situations that determine the impartiality of the chosen intermediary to work on the market. Then the quotations can leave the specified deviation corridor and information about the next requotes will be received.
Order Instant Execution: Pros And Cons
The advantage of this type of order is obvious for strategies that are based on the exact point of entry. This is a scheme of short-term and scalping type.
The main disadvantage of immediate execution is the requests, their number reaches different values, depending on volatility in the market environment.
Thus, when the market is «calm», Instant Execution works well. When operations are planned at active times, it is better to consider other trade orders and plan work using market, stop or limit orders.