On any trading floor, using any trading system, be it scalping on M1 or investing for weeks or months - no matter how you trade, you always do one and the same thing - put in an order. This is what we are going to talk about.
There are three major known types of orders - Market, Stop and Limit. The Market order, as it follows from the name, is sent if the trade has to be made at the current price. Stop and Limit are a little more complex - they are 'pending' orders, and each is has its own characteristic features. In brief, Stop orders become Market orders when the market penetrates the price on the order. The main feature of a Stop order is that it can be filled only at the indicated or worse price. It is execution at a worse price that slippage means. On the contrary, Limit orders can be executed only at the indicated or better price - slippage is also possible, only for the trader's benefit. It is Limit orders that become part of the Market Depth at a stock exchange and are executed in parallel with counter orders. There is likelihood of slippage in both cases. Unfortunately, some DCs allow the kind of slippage which only brings the trader losses.
Accuracy of order execution is important for any trading system, particularly for intraday trading, and becomes crucial for scalping where every pip is significant and slippage and requotes can bring your work to naught. Making hundreds of trades every day with numerous cases of unfavorable slippage, even an experienced scalper risks 'ruining' an account, no matter how large it is, in a short period of time. The choice of the trading strategy will be almost irrelevant here - when the number of trades grows, frequent slippage will 'bite' off part of the trader's own funds.
In addition, accurate execution is vital for automated trading because software trades in strict compliance with inbuilt parameters using mainly pending orders and cannot readjust itself in response to 'surprises' such as price manipulations and how orders are executed by dishonest DCs. The algorithm experts are based on simply does not allow for inaccurate execution which depends on the broker. Naturally, the burden of losses rests again on the trader in this case.
The importance of accurate order execution can hardly be overestimated. Whether you trade from the market, use pending orders or robots - in any case, execution accuracy is of great importance and becomes one of significant criteria during broker selection because a trade entered at a price worse than expected decreases profits and increases stop levels. In addition, let's remember about such an unappealing phenomenon as its combination with slippage on a stop-loss, a full stop order. Therefore, execution of orders exactly at the stated price allows trading according to a plan and forecasting the outcome more accurately which eventually helps profits grow more.
We have invited specialists from Exness, a company that claims exceptional accuracy of order execution for its traders, for our talk today.
Market Leader: Please tell us how the market conditions and order type affect the accuracy of its execution.
EXNESS: Our company offers comfortable trading conditions regardless of the trading system you use. You were right in pointing out that accurate execution is particularly important for scalpers' market orders and 'break' orders. But it is equally important in other cases. So, we are trying to ensure as accurate execution as possible of any order type and can meet this objective through cooperation with largest liquidity suppliers, modern software and effort of the company's technical staff that ensures fast and uninterrupted communications. During news releases, execution quality remains invariably high with no slippage and minimum requotes. As a result, we can state that even serious changes in the market's dynamic parameters have practically no impact on the accuracy of execution of our clients' orders and, consequently, profitability of trading.
Market Leader: So, Exness guarantees there will be no slippage whatsoever?
EXNESS: That’s right. We guarantee complete absence of slippage for all orders and forex instruments. The exception includes only the first 3 hours after trading in a certain instrument starts upon the opening of a new week. It is actually during these three hours of the week that absence of slippage is not guaranteed. However, even at this time slippage is at a minimum and possible in both directions, including for a trader's benefit, with equal likelihood. Exness policy is that results on orders that slip for the clients' benefit are never revised and profits are paid for them in full and in a timely manner.
Market Leader: What can you say about some pitfalls of pending order execution?
There are a few aspects of how execution of pending orders is organized that seriously affect traders' interests. For example, in case of a Stop order execution some DCs analyze a few ticks the terminal receives and execute the order at a price unfavorable for the trader. Not the first price that reaches the order's level. Or, in case of execution of a Limit in case when the price breaks through the order price and then reverts (for course, in the trader's direction), they consciously wait for a few ticks (the so-called 'confirmation of order execution') and only then execute the order. By using such tactics, they actually steal the trader's legitimate profiles. You can find a variety of typical complaints about low-quality execution of pending orders at different resources in the internet. ('The price reached the Limit order level but the order didn't go through').
EXNESS: Exness always executes orders at the first tick which is illustrative of what the company's policy is about - it is primarily based on integrity and openness to the client. This order execution rule is very strictly met and controlled. This is why we could guarantee absence of slippage.
Market Leader: Now expert and robot assisted trading is increasingly more popular. Many companies prohibit fully automated trading as they do not have sufficient technical capabilities. How does your company treat use of robots?
EXNESS: We full support utilization of automated trading systems. Apart from exceptional accuracy of order execution, we offer free VPS (Virtual Private Server) responsible for high-quality and uninterrupted communications. It also relieves the trader from a variety of routine operations and, as such, substantially saves his or her free time. Another factor that clearly speaks for ATS - absence of the emotional factor during decision-making. A combination of a well-written expert advisor with advantages of impeccable order execution and VPS strengths of Exness promote profitability of the trading strategy of your choice to a great degree.
Therefore, Exness welcomes use of any trading strategy regardless of whether a trader is scalping from the market, pending orders are sent or a trading robot is used. Orders execution and quality of connection will always be at the highest possible level.
Market Leader: Accordingly, the trader's choice will be limited by nothing, and your company offers all conditions for any trading strategies - from aggressive scalping to use of robots. We were convinced once again that Exness deserves very close attention from traders. The only thing left for us to do is to wish our readers successful trading regardless of the type of orders they place and, as always, a friendly trend!
