Execution Types

Execution types refer to the various mechanisms trading platforms use to route and fill client orders in the market. They differ in speed, transparency, and the likelihood of slippage or requotes.

Main Types:

• Instant Execution: The order is placed at a fixed price requested by the trader; if the market price changes, a requote may occur.
• Market Execution: The order is filled at the best available price in the market without requotes, though slippage may occur.
• Direct Execution (ECN/STP): Orders are routed directly to liquidity providers without manual intervention or dealing-desk manipulation.

Importance for Traders:

• Directly affects trade execution speed and accuracy.
• Helps in choosing the right trading style, particularly for high-frequency traders such as scalpers.
• Reflects the broker's level of pricing transparency.

Common Mistakes:

• Believing that all execution types produce the same outcome.
• Overlooking the impact of execution type on fast-paced trading strategies.
• Failing to check the broker’s execution model before trading with real capital.

Understanding the execution model helps traders set realistic expectations regarding speed, precision, and the true cost of trades. How It Is Displayed on the EVEST Platform: EVEST transparently outlines the execution type applied to each trading account within its account specifications—whether executed directly via external liquidity providers or internally—clearly detailing expected spreads and associated commissions for each type.

When It Is Best to Know It: It is essential for every new trader on EVEST to understand the execution type applied to their account before starting live trading, especially if their strategy relies on high speed or short-term trading sensitive to price and timing differences.

Risks: A lack of understanding regarding execution types can lead to unexpected surprises in terms of fill speed or spread widening, particularly when comparing models that process orders differently behind the scenes.

Additional Common Mistakes: Some traders assume all execution types are identical in speed and cost, whereas each mechanism has distinct characteristics suited to different trading styles; others neglect to review the terms and conditions specific to the execution model of their account.

Relationship to Risk Management: Understanding the execution type helps traders select a strategy that matches market realities. Fast strategies require minimal latency, whereas longer-term strategies can tolerate greater execution delays. EVEST provides clear information to help traders align their style with the available execution type, mitigating unexpected operational risks.