If you just recently started forex trading, you may have come across discussions about the importance of fast order execution by brokers and exchange platforms. They brag about their platforms to quickly execute trades and the advantages of fast order execution. But amidst all this talk, have you ever wondered how your orders actually get executed, and why do some platforms seem to execute trades faster than others?
It’s all about the market execution model! We'll take a closer look at Exness Broker and examine why the platform has employed two execution models for different account types and how these choices can impact your trading strategies.
What is an Execution Model?
Before we get to the Exness market execution model, let's take a step back and understand what an execution model is and what it means in forex trading.
An execution model refers to the method by which orders are executed in the forex market or other financial markets. It defines how your broker handles and fills your orders. The execution model determines how your buy or sell orders are processed and executed in the market.
There are two main execution models: market execution and instant execution.
Market Execution Model:
In the market execution model, your broker executes your order at the best available price in the market at that particular moment. This means that your order is filled quickly, and the execution price may differ slightly from the price you initially saw when placing the order.
This model can, however, can cause slippage. Slippage refers to a situation where the execution price deviates from the expected price.It can be both positive, resulting in a better execution price, or negative, leading to a worse execution price.
Instant Execution Model:
Instant execution, on the other hand, gives traders more control over the execution price. With instant execution, you specify the exact price at which you want your order to be executed. If the specified price is available in the market at the time of execution, your order is filled at that price.
However, with instant execution, there’s a possibility of requotes. If the specified price is no longer available, the broker may offer a new price (requoting) for you to consider. You have to decide whether to accept the new price or adjust your order accordingly.
Exness Broker and Execution Models
Exness is a reputable broker in the forex industry, known for its commitment to providing a reliable and transparent trading platform.
Since its establishment in 2008, the broker has rapidly expanded its reach and amassed a significant user base. In fact, the Exness statistics about Forex traders reveal that the platform currently boasts a user base of over 490,000 traders.
This expansion speaks to traders' trust and confidence in Exness for their trading needs. But is Exness regulated in the USA, and in which countries does it operate? Unfortunately, the platform is not available to traders in the USA.
However, the platform is authorized and regulated in other prominent jurisdictions around the world like the United Kingdom and various countries across Asia, including Russia and China. Exness has also extended its operations to Africa, specifically in Kenya, South Africa, Seychelles, and Mauritius.
So, what execution models does Exness employ? The broker offers different execution models for its various account types:
Market Execution Model (Most Accounts)
When you’re researching about Exness account registration process, you'll find that Exness offers four different trading account types. Among these account types, Exness uses the market execution model for the Standard, Raw and Zero Spread accounts.
This execution model guarantees rapid and efficient order execution. Therefore, Exness traders can enter and exit positions swiftly, taking advantage of the best available market prices at the time of execution.
Instant Execution Model (Pro Account)
Unlike the other account types, Exness employs the instant execution model for its Pro Account. This execution model caters specifically to traders who require precise control over the execution price. With instant execution, Pro account holders on Exness can enter or exit positions precisely based on individual trading preferences and strategies.
In conclusion, understanding execution models is important for forex traders as it directly impacts the speed, accuracy, and control of order execution. The two primary execution models, market execution and instant execution offer different advantages and considerations, catering to different trading styles and strategies. If you prefer more control over the execution price, look for a broker that offers instant execution, but if you want fast order execution without requotes, look for one offering market execution.
Exness is therefore an ideal broker to consider as it offers both the market and the instant execution models. You only need to choose and trade on an Exness account that employs your preferred execution model.
