If you are new to trading, you may have come across the terms “instant execution” and “market execution.” These are two different ways of executing trades in the forex and stock markets. In this article, we will explain the key differences between the two and help you decide which one is better for your trading style.
What is Instant Execution?
Instant execution is a type of trade execution in which your broker will execute your trade at the price you requested. This means that your order will be executed immediately, and you will get the price you see on your screen.
Pros of Instant Execution
One of the main advantages of instant execution is that you can get the exact price you want. This is particularly useful if you are trading in a fast-moving market and need to get in and out quickly.
Cons of Instant Execution
The downside of instant execution is that if the market moves against you, you may end up with a worse price than you expected. This is known as slippage, and it can be particularly problematic if you are trading large volumes.
What is Market Execution?
Market execution is a type of trade execution in which your broker will execute your trade at the best available price. This means that your order may be filled at a price that is slightly different from the price you requested.
Pros of Market Execution
One of the main advantages of market execution is that you are more likely to get a better price than you would with instant execution. This is because your broker will execute your trade at the best available price, which may be better than the price you requested.
Cons of Market Execution
The downside of market execution is that you may not get the exact price you want. This can be frustrating if you are trying to enter or exit a trade at a specific price.
Which One is Better?
The answer to this question depends on your trading style and preferences. If you are a day trader who needs to get in and out of trades quickly, instant execution may be the better option. On the other hand, if you are a swing trader who is more concerned with getting the best price, market execution may be the better choice.
In conclusion, instant execution and market execution are two different ways of executing trades in the forex and stock markets. Both have their pros and cons, and the choice between the two depends on your trading style and preferences. As always, it is important to do your research and choose a broker that offers the type of execution that is best for you.