Executions Flashcards
Explain both types of execution.
Execution Types
Instant execution: Executes the order at the Requested Price of the client.
Market execution: Executes the order at the available market price at the moment of order processing.
Specify an advantage of each execution.
Execution Types
Instant execution: Controlled slippage with deviation.
Market execution: 100% market access.
Specify a disadvantage of each execution.
Execution Types
Instant execution: Too many requotes can prevent you from entering the market.
Market execution: uncontrollable slippage.
What is a requote? What action(s) should client take once getting requote?
Requote
A requote is a notification when the Requested Price by the client is not available. Client will have 3 seconds to accept or reject the new price, if no answer is received then the order gets cancelled.
When can requote occur?
Requote
whenever the client tries to open an order and the requested price is not available. Usually happens when there’s volatility in the market.
In which type of orders and execution do requotes occur?
Requote
It only happens to market orders with instant execution.
What is slippage, and when can it occur?
Slippage
Slippage: Difference in pips between the executed price and the requested price by the client. It happens when the market has high volatility.
In which type of execution is slippage unavoidable?
Slippage
It is unavoidable in market execution.
How does slippage affect limit pending orders? Provide an example.
Slippage
Slippage is good for limit pending orders. Example: If a buy limit order gets open with slippage the opening price will be lower than the original price, that means more profit.
How does slippage affect stop pending orders? Provide an example.
Slippage
Slippage is bad for stop pending orders. Example: if a sell stop gets open with slippage the opening price will be lower than the original price, and that means less profit.
What is Price Gap Protection? When and how is it applied in Exness?
Price Gap Protection
It’s a benefit for our traders when there is a gap in the price of an instrument, if that price gap fall between the gap level value for that instrument, the order gets executed at the Requested Price by the client, otherwise it takes First Price after gap. There are gap level values for all instruments.
Price Gap Protection is applicable for which type of orders and account types?
Price Gap Protection
It is applicable to pending orders only, and to all accounts.
Explain the relationship between slippage and Price Gap Protection.
Price Gap Protection
If the order is executed at Requested Price, then there is no slippage. If it is executed at First Price after gap, then there’s slippage.
Set a deviation and explain its purpose.
Practical - Deviation
Open Pro account in any platform and set deviation when opening the order. The purpose is to have controlled slippage when opening our pending orders.
