Order execution is an important process in Forex trading. Simply put, order execution is the price at which you buy a certain currency. There are two types of execution: Market and Instant. In the first case, you tell the broker that you are ready to buy at the current price. In the second case, you want to buy only at the specified price or better. Let's look at these types in more detail.

market vs. Instant Execution: What are their differences?

Instant Execution– a method of execution when orders are executed only at the price declared by the trader or are not executed at all due to sharp price changes in the process of placing an order. The order will not be opened/closed without the consent of the trader for a particular price. In other words, requotes can happen. Traders for whom it is important that the order is filled exactly at the set price usually prefer this type of execution.

Market execution– execution method, in which orders are opened at the current market price. Features guaranteed performance. Orders are opened at current market prices in any case. During times of high market volatility, slippage can occur. This means that the order will be executed in any case at the price in force on the market at the time of execution. The price can be either higher or lower than indicated. Market Execution is chosen by traders who care about entering the market.

To make it clearer on what principle each method works, let's consider the mechanism for executing transactions using the following example: a trader wants to buy EUR/USD and opens a buy order. During the processing of the application, the price may change - decrease or, conversely, rise. With Instant Execution, the broker sends a requote (repeated request) with new quotes. After that, the trader needs to decide whether he wants to buy the currency at this price or not. With Market Execution, the transaction is concluded immediately at the changed price without the confirmation of the trader.

To make trading pleasant and comfortable, JustForex offers its clients market execution of orders (Market Execution). This type of execution gives the trader the opportunity to control the trading process and make decisions exactly at the right moment, when every second counts and delay has a too high price.

All the benefits of Market Execution are shown in this comparison table:

Instant Execution:

• Order execution takes 3-5 seconds
• Requotes
• Execution depends on the market
• Access to the market through a dealer
• The price is determined by the broker
• It is not possible to open/close an order at the best price
• Trading strategies (scalping, news trading, hedging, using Expert Advisors) are limited

Market Execution:

• Order execution takes a fraction of a second
• No requotes
• Execution guaranteed
• Direct access to the market
• The price is determined by the market
• There is always an opportunity to open/close an order at the best price
• No restrictions on trading strategies (scalping, hedging, news trading, using Expert Advisors)

However, in terms of performance and functionality, it is inferior to the new generation of trading platforms - MetaTrader 5. The program interface has not changed much, but the internal content has become better and more functional. If earlier it was possible to trade only on the currency markets, now the MT5 trading platform allows you to trade not only on CFDs, but also on stock exchanges, buying stocks, futures and options. All this can be done from one account, which greatly simplifies trading. In addition, the speed of order execution has increased, new indicators and tools for technical analysis have been added, the number of available timeframes has expanded, and much more. The number of companies that provide their clients with the opportunity to work with this trading platform is growing every day. In this article, we will look at the differences between the MT5 trading platform and its predecessor, the MT4 trading terminal.

Benefits of the MT5 trading platform

MetaTrader 5 has a huge number of advantages over similar trading platforms. Let's consider the most important of them, and also find out what additional functions appeared in the fifth generation of the popular trading terminal:

MetaTrader 5 is a multi-asset trading platform, with the help of which a trader gains access not only to the Forex market, but also to stock exchanges. In addition to currency trading and trading, you can now buy or sell securities (stocks, bonds, futures) on stock exchanges in the USA (NASDAQ, GLOBEX, NYSE), Tokyo (Tokyo Stock Exchange), London (London Stock Exchange), Hong Kong (HKEx ) and other trading platforms. To do this, it is enough to open an order to sell or buy, and make a deal on your behalf on the exchange;

Free license. You can download MT5 absolutely free of charge on the official website of MetaQuotes and use it in your trading;

Four order execution modes. With the support of a broker, the MT5 trading platform can implement four order execution modes: Instant Execution (immediate), Market Execution (on the market), Request Execution (on request) and Exchange (exchange). For example, you need orders to open immediately, regardless of the current market price. You choose the Market Execution order type, and the broker executes the order at the market price without requotes and delays;

Six types of pending orders. Two more pending orders have been added to those already known from the MT4 trading platform (Buy Stop, Buy Limit, Sell Stop and Sell Limit): Buy Stop Limit and Sell Stop Limit, which makes it possible to create a more flexible trading system. Buy Stop Limit is essentially a stop order for setting a Buy Limit buy limit order. When this type of order is set, the "Price" field specifies the stop level, upon reaching which the price will trigger an order to place a Buy Limit order at the level that was previously specified in the "Stop Limit Price" field. In this case, the stop level must be higher than the current price, and the price of the Stop Limit order must be below the stop level.



Sell ​​Stop Limit is a stop order for placing a Sell Limit sell limit order. When placing this order, in the "Price" field, you must specify a stop level, upon reaching which the order to place a Sell Limit order at the level previously specified in the "Stop Limit Price" field will be triggered. In this case, the stop level must be below the current price, and the price of the Stop Limit order must be above the stop level;

One Click Trading function. Thanks to the "One Click Trading" feature, you can enter into trades and manage orders directly from the trading chart;



Built-in reports. To evaluate the effectiveness of your trading system, there is an automatic analysis, which is carried out according to the following indicators: the number of transactions, profit expectation, profit factor, average profit and loss;

Timeframes. There are 21 timeframes available in MT5, which gives you more choice of working period for your strategy. By default, only the main ones are on the toolbar. By calling the context menu, you can add the timeframes you need to the toolbar;



Quote charts. Charts are required for technical analysis. They allow you to monitor changes in quotes online and quickly respond to changes in the market situation. In MT5, you can open up to 100 charts at the same time, as well as change their display to a broken line, bars or Japanese candlesticks. At the same time, you can change the color scheme and scale, impose various indicators or graphic elements on the chart - in general, do everything to make your work convenient and comfortable. All performed manipulations with charts can be saved to templates for quick restoration of the workspace in the future;



Built-in MT5 indicators. The MT5 trading terminal contains several dozens of built-in ones developed by professional traders. They can be placed both in separate subwindows and directly on the chart. At the same time, an unlimited number of technical indicators can be installed on one chart. The difference from the MT4 trading terminal is that in the MT5 trading platform, you can overlay one indicator on another, getting smoother indicator data;



Free access to custom indicators. If the built-in indicators are not enough for you, then you can download MT5 indicators absolutely free of charge by going to the "Code Base" (or "Library") tab at the bottom of the MetaTrader 5 platform screen, and you do not need to install them in the trading terminal, they will be automatically copied to the custom indicators folder when downloading;

Updated MetaEditor for creating indicators and Expert Advisors. If you have at least a little programming knowledge, you can independently develop indicators for MT5 in a specialized MetaEditor. It was specially created for the MQL5 language, which is based on C ++, which makes the work of Expert Advisors even faster than in the outdated version of the MT4 trading terminal. The MQL5 language is object-oriented, so it is enough to have superficial programming knowledge to create Expert Advisors. The built-in debugger in MetaEditor will allow you to find errors in the program code at the stage of its development;



Strategy tester. After creating your own Expert Advisor or purchasing a new trading Expert Advisor, you can backtest it before launching it on a live account. Read how to test Expert Advisors in the MT4 Strategy Tester;

Built-in economic calendar. For the convenience of trading, there is a built-in MT5 that displays the time of the release of the news, the currency that is affected by this news, the name of the economic event, the priority of the news, as well as the current and previous value of the indicator and its forecast. Optionally, you can add economic events directly to the chart using the context menu so as not to miss the release of important news;



Trading signals. If you do not have good knowledge for successful Forex trading, you can subscribe to successful traders. To do this, go to the "MQL5 Signals" tab, select the signal provider you are interested in and subscribe. Starting from this time, transactions of a successful trader will be automatically copied to your trading terminal;

Alerts in MT5. In order not to be at the computer monitor around the clock waiting for a new signal to appear on your trading system, you can set alerts - sound notifications about the occurrence of a trading event. As a sound signal, you can select a standard melody or use your own audio file, specifying the path to its location. In addition to displaying an alert on a computer screen, you can configure it to come to your email address or mobile phone;



Glass of prices. A new feature has been added to the MT5 trading terminal - Depth of Market. It allows you to receive reliable information about the real market price and volumes of trade requests. The Depth of Market can also be used as a scalping tool, placing pending and market orders with one click. In addition, the Depth of Market displays a tape of deals in the form of a tick chart, where red and blue circles indicate deals to sell or buy, and the size of the circles shows the volume of deals made. To call the Depth of Market, you need to execute the appropriate command in the context menu of the Market Watch;



Market. More recently, a new Market tab has become available in the MT5 trading terminal, with which you can purchase licensed trading robots and other software applications, as well as download trading magazines;



Virtual hosting. If you trade with an advisor or copy trades of the best traders, then you need to ensure the smooth operation of the trading terminal. This option can be enabled in MT5 by registering at http://www.mql5.com/ and entering your account details in the trading terminal. Unlike conventional virtual hosting, MT5 is distinguished by the proximity of its servers to your broker, as a result of which it is possible to minimize delays when sending orders from the trading terminal to the broker's server;

Mobile trading. Thanks to you, you can make trading operations anywhere in the world. On the official website of the company, you can download MetaTrader 5 for Android, iOS, iPhone or iPad absolutely free of charge.

Disadvantages of the MT5 Trading Platform

Despite all the advantages of MetaTrader 5, it was not without its drawbacks:

The MetaTrader 5 trading platform has low system requirements and can run on any operating system: Windows, Linux or Mac. Novice traders will appreciate its intuitive interface and a huge number of built-in technical indicators. Experienced traders will be interested in trading on the stock market without opening an additional account, as well as the ability to analyze trading systems thanks to built-in reports. Forex trading through the MT5 trading terminal does not require any special skills or special skills. Understanding the fundamentals of the foreign exchange market and having it is all that is needed for successful Forex trading.

Studying the terms of trade with different brokers, novice traders most often cannot understand the terms Market and Instant Execution, as a result of which they open an account at random, and then they are surprised at the problems in the execution of applications. In fact, there is nothing complicated here, the main thing is to remember a few simple characteristics.

When forex dealers first appeared, all "retail" accounts (with small amounts) used only the Instant Execution scheme, so let's start with it.

Literally translated from English, the term Instant Execution means " current execution».

That is, on such an account, the broker processes client orders strictly at the price specified in the buy/sell order.

If by the time this order is processed, the market quote of the currency pair changes, the server rejects the client's order and offers to open a position at a new price. This operation is called "requotes", which is better known in Russian transcription as "requotes".

This approach to the execution of orders seems logical and completely correct, because all traders want their orders to be opened strictly at the declared prices. However, in practice, it greatly poisons the lives of speculators, especially those of their stratum that prefers to use (advisers). And here we come close to the main differences between Market and Instant Execution.

Main differences between Market and Instant Execution

As you can already guess from the name, within the framework of the Market Execution scheme, client orders to buy and sell currency pairs are processed at market prices, i.e. according to the actual quote fixed by the server at the time of order execution.

For example, if when clicking on the “buy” button, EUR was quoted at 1.05614 per USD, and by the time the order was processed, the rate had grown by 0.00002 points, the order will be opened at a price of 1.05616.

Thus, the main difference between Market and Instant Execution is the absence of requotes during market execution, thanks to which a trader can safely scalp and use Expert Advisors.

In addition, Market Execution accounts have several other advantages:

• On them, the processing speed of applications usually does not exceed 1 second (most often orders are opened instantly), while on Instant accounts the server regularly slows down under various pretexts (later we will return to this moment);
• This technology is provided for everyone (i.e. it corresponds to the modern architecture of the market, but how a particular broker will use it is another matter);
• When using the Market Execution account, the terminal does not require additional settings.

Now let's look at each item in more detail. At the very beginning of the review, I noted that the Market and Instant Execution schemes did not appear simultaneously, in particular, when the Forex market was just beginning to develop in Russia, brokers offered regular accounts (standard) with exact execution to their clients.

If some of the readers do not yet know about the difference between “standard” type accounts and modern ECN accounts, let me remind you that in the first case, the forex dealer acts as a counterparty for the client, and brings orders to the market only in case of emergency, when the net client position carries risk.

Large brokers that have been operating in the market for a long time do not hide this fact and even consider it in detail in their business model. For example, the company draws a clear line between standard and ECN accounts.

But these are all details, the essence is this - the Instant Execution scheme itself worsens trading conditions, as a result of which the trader begins to lose money on various trifles. For example, if a deal is not opened several times due to requotes, the total profit on the operation will eventually be less than planned.

The same thing happens when orders are processed slowly - while the server is "digesting" the order, market quotes change, as a result of which the user again encounters requotes. In principle, this difference between Market and Instant Execution alone is already enough to make a choice in favor of the first option.

On the other hand, if a broker works according to the "kitchen" scheme, no one forbids him to issue a market execution either, so it is undesirable to use this criterion to evaluate the company's business model. It is better to immediately familiarize yourself with the regulatory documents.

And the last nuance is related to the additional settings of the MetaTrader terminal. The fact is that on Instant Execution accounts you can get rid of requotes using the following function.

If you put a tick in front of the indicated point in the order window and set such a deviation value that the market will not reach even on a strong movement, a regular account can become quite suitable for scalping and (but be that as it may, the Market Execution scheme saves the user from this additional headache).

Thus, when comparing Market and Instant Execution, I recommend choosing the first type of accounts, as they are closer to the real market and create much less non-trading risks.

Literal translation of the term "Instant Execution"- instant execution or instant execution. Despite the fact that many brokers flaunt this translation and claim that the execution of trading orders with "Instant Execution" really instant, in fact it is not. The execution system has nothing to do with the speed of execution of a trade order. The speed is entirely determined by the broker, his dealing policy and honesty, and the execution system is the principle by which you are brought into the market.

"Instant Execution" - what is it?

More precisely, the term "Instant Execution" can be translated as "accurate execution". Those. Forex broker executing your order on the system "Instant Execution", undertakes to execute it either at the price at which you sent the request (i.e. at the price that was displayed on your chart at the time you pressed the button buy or Sell), or not executed at all. Let us consider in more detail the mechanics of the process on example:

• At 15:16:03 you press the button buy which says EUR/USD 1.49059.
• The broker gives you the message "Order accepted" and "Order executed". This means that the broker has started processing your request and is trying to bring your deal to the interbank market (forex). This process takes some time, usually from 0.5 to 20 seconds. During this time, the price can go up, down or stay in place. Let's take a closer look at each of these options, taking into account the fact that, according to the "Instant Execution" rules, the broker is obliged to take you to the market at a price of 1.49059 or not to take you out at all.
• The price has not changed. In this case, your order will be filled at the requested price of 1.49059.
• The price has gone down. Those. if the broker fills your order at 1.49059, he will be able to earn this price difference in addition to the spread, since he will be able to buy cheaper than you ask. In this case, your order will be filled at the requested price of 1.49059. It should be noted that if the price goes too far against you, then most likely the broker will not fill your order.
• The price has gone up. In this case, it is unprofitable for the broker to execute your order, because the market price is worse than yours. In this case, your order will be rejected by the broker and you will receive a message that the price has changed - the so-called Requite.

When executing pending orders and orders of the type "Take Profit" And stop loss The Instant Execution execution system also has its own nuances, and they are so diverse that it makes no sense to describe them all. We only note that in the case of strong price gaps, i.e. when the price jumps over your order or stop order, they may be filled with slippage, they may not be filled, they may be filled at the stated price, it all depends on the broker.

Benefits of "Instant Execution"

• If your strategy is important exactly enter, i.e. exactly at the price that is requested, and if it doesn’t work out, then it’s better not to enter at all, then you need to choose “Instant Execution”.
• With "Instant Execution" it is possible to set the parameters immediately when sending an order "Take Profit" And stop loss.
• For a number of scalpers (especially those who jump into anomalous movements, for example on the news), only the "Instant Execution" execution system is suitable, i.e. for them, execution not at the declared price can change the mathematical expectation of the system in a negative direction.

Disadvantages of "Instant Execution"

• The main disadvantage of "Instant Execution" is requotes. If the market moves too fast, then the number of requotes increases sharply and there is a chance of not entering at all on your signal. On average, the number of requites ranges from 1% to 20% of the total number of orders. There are practically none on the calm market, there are more than enough of them on the news. For example, some vane systems are insensitive to the fact that a deal will be opened at a slightly worse or better price than the requested one. It is much more important that it be open at all, because such systems are built on a series of transactions, and a break in a series can disrupt the entire system.

Market Execution

Literal translation of the term Market Execution- market execution or market execution. As in the case "Instant Execution", this system does not in any way determine the speed with which your requests will be processed - this is the principle by which you are brought to the market. Although in practice, brokers using Market Execution execute orders faster than brokers working on "Instant Execution".

"Market Execution" - what is it?

If a broker uses this order execution system, then he guarantees you, with almost 100% probability, that your order will be filled, but it is quite possible, although not necessarily, it will not be executed at the price that you see on the screen, but according to the one that will exist in the market at the moment of execution of the order. This price can be either better or worse than the one you saw on the chart when you pressed the button buy or Sell. Let us consider in more detail the mechanics of the process on example:

• At 16:19:23 you press the button buy which says GBP/USD 1.65282.
• The broker gives you the message "Order accepted" and "Order executed". As with "Instant Execution", this means that the broker has started processing your request and is trying to bring your deal to the interbank market (forex). While he is doing this, the price can go up, down or stay in place.
• The price has not changed. In this case, your order will be filled at 1.65282.
• The price has gone down and is 1.65202. In this case, your order will be filled at 1.65202 and your order will be open 8 pips better than you planned.
• The price has gone up and is 1.65361. In this case, your order will be filled at 1.65361 and your order will be open 7.9 pips worse than you planned.

As you can see from the example, your order will be executed in any case, no matter how the price behaves, but worse or better than the price you see, it depends entirely on chance.

Benefits of Market Execution

• If your strategy is important not accuracy entry, but its very fact, it is better to choose a broker with the execution system "Market Execution".
• The very logic of this execution system allows the broker faster process client requests and bring them to the market.
• For systems with mathematical expectation and a large “spread”, the nuances of the entry do not matter, and if it is not the accuracy of the entry that is important for them, but the very fact of it, then it is better to choose a broker with the Market Execution system.

Disadvantages of "Market Execution"

• The biggest disadvantage"Market Execution" lies in its advantage, namely, in the execution at the price that exists in the market at the time of execution. During periods of abnormal volatility, i.e. at the moment of release of important news, market openings after holidays, etc., the price can change abruptly by tens of points. During such periods, your orders can open both with a big plus for you, and vice versa with a big loss.
• When working on this system, it is impossible to specify parameters "Take Profit" And « stop loss » immediately when sending an order to a broker. Because it is not known in advance at what price the order will be executed, it is impossible to determine whether "TakeProfit" and "StopLoss" will be outside the limits of the allowable Stop/Limit levels or not. Those. first you have to open an order, and after that set "TakeProfit" and "StopLoss" modifying it.
• Some vane systems are insensitive to the fact that a deal will be opened slightly worse or better than the requested price. It is much more important that it be open at all, because such systems are built on a series of transactions, and a break in a series can disrupt the entire system. The inability to send an order with the preset levels "TakeProfit" and "StopLoss" slows down the process of manually placing orders.

"Instant Execution"

The term "Instant Execution" in literal translation sounds like fast execution or instant execution. Many people try to manipulate this translation of the term, arguing that with "Instant Execution" all trading orders are executed instantly, but, despite this, we will allow ourselves not to completely agree with this. In practice, such a system for providing quotes has nothing to do with the speed of execution of trade orders. This system is nothing more than a method of work that processes the trader's orders, and the speed of work depends entirely on the broker and his dealing policy.

How "Instant Execution" works.

A deeper translation of the term "Instant Execution" sounds a little different - "exact execution". That is, when the broker executes your order in this system, he undertakes to execute it at the price you specified (the price shown on the chart) or not to execute it at all. As you can see, the principle of honesty is still involved here. It is worth considering the process mechanics of this method in the example below:

The clock is 12:17:03 and the trader presses the "Buy" button with the inscription EUR/USD 1.4805. In response, he receives a message from the broker that he accepted the order and launched it into execution. This means the following: the broker has started processing the request and bringing this transaction to the market. In this case, the procedure may take a few seconds, and during this time, there is a possibility of raising, lowering or maintaining the price at the same level. In more detail, each of these situations is as follows. If the price remains at the same level, then the order will naturally be executed at the price requested by the trader, that is, at 1.4805.

The next option - the price dropped. In this situation, it is convenient for the broker to execute the placed order at 1.4805, because he has the opportunity to earn extra money on the price difference. That is, he can buy at a lower price than the trader asks. It turns out that in this case the requested price of 1.4805 per order will be executed.

The third option - the price has risen. It is clear that this situation is not beneficial for the broker, since the price on the market is higher than the one requested by the trader. As a result, it turns out that the order is rejected by the broker, and the trader only receives a message about the price change - requite.

The "Instant Execution" system has its own special nuances when executing orders such as "TakeProfit" and "StopLoss". This type of orders, at the discretion of the trader, can be used immediately before opening a trading position, unlike the Market Execution system, where this is not possible. But at the same time, it should be borne in mind that when trading through "Instant Execution", significant gaps in price are executed by the broker at his discretion. That is, he can execute them at the stated price, execute them with slippage, or not execute them at all.

The main advantage of the system:

The main advantage of this type of execution is that all spreads for trading instruments are fixed. Trading systems designed for a point entry into the market are quite susceptible, and even a minimal deviation in the quality of order execution can turn a profitable system into a loss one. If the main goal of a trader is to enter the market only at the requested price, and otherwise, it is better not to enter, then it is recommended to choose the “Instant Execution” system, which, in addition, provides immediately, at the time of sending the order for processing, to set the values ​​“StopLoss” and “ take profit. Traders using scalping, for example, give advantage to this system, because the execution of an order at an undeclared price can change the result of the trade not in their favor.

The main disadvantages of the system:

The main disadvantage of this system, no doubt, are considered requotes (requites). In the case when there is an active movement on the market, an increased number of requotes is also noted, which increases the likelihood of not entering the market on the signal given to the trader. Their number can vary from 1% to 20% of the total number of orders. When there is sideways movement in the market, there are practically no requotes.

Market Execution

The literal translation of the name of this system sounds like a market execution. Like the previous system, the Market Execution system will not determine the request processing speed, but only the operating principle that should bring the order to the market. It is especially worth noting that, despite this statement, Forex brokers who use this system execute trade orders several times faster than brokers who use the Instant Execution system.

The principle of operation of "Market Execution".

If the broker will use this system to execute the order, then this is a guarantee of its execution. At the same time, there is a possibility (albeit insignificant) that the order will be executed by him at the price that will be relevant on the market at the time of execution, and not the one that was indicated on the trader's monitor when he gave the order to open. At the same time, the price can be rejected both for the better and for the worse. It is worth dwelling on the mechanics of this process in the following example:

At 15:12:22, the trader clicks on the “Buy” button, where GBP/USD 1.64289 is displayed and receives a message from the broker that his order has been accepted and executed. The broker starts processing the request and brings this transaction to the market (in the case of currency trading - to the interbank market). At this point, the price may rise, fall, or remain at the same level.

The first case - the price remained at the same level. The broker will execute the placed order at the price specified by the trader.
The second case - the price went down and amounted to, for example, 1.64259. Accordingly, the order will be executed at a price of 1.64209, therefore, 3 points better than planned.
The third possible variant - the price has risen and made 1.64312. It turned out that the order will be executed at a price of 1.64312, which is worse than the trader had planned.
As a result, the order will be executed in any case, regardless of fluctuations in the market, but no one knows how this will affect the expectations of traders.

Advantage of Marlet Execution System

In the event that only the fact of entry is more important, and not its accuracy, then it is better for a trader to use the services of a broker working on the Marlet Execution execution system. This system will save the trader from requotes and allow the broker to process requests much faster and bring them to the market.

The disadvantage of the "Marlet Execution" system

The main disadvantage of the Marlet Execution system is its advantage, which concerns the execution of an order at the current market price. During the period when important news is released, markets break off after holidays, the possibility of order execution with slippage is not excluded - a trader can open at a better price, or maybe vice versa.

The second disadvantage of this system is that when sending an order to a broker, it is impossible to set the parameters "TaleProfit" and "StoppLoss" in advance, since the price at which the requested order will be executed is unknown.