Order execution is a process of filling the requested buy or sell order of the trader.
In the previous lesson, we talked about the prices that forex brokers show you on their trading platforms and whether the prices are fair and accurate.
But having fair and accurate pricing on your trading platform means nothing if your trade hardly ever executes at the shown price.
It’s like visiting a bakery and being shown a photo of a cake they offer. You like how it looks so you order it. But when you get it, you discover that the baker wasn’t able to actually execute and create the cake that you requested.
What you see above is an example of poor cake order execution! 🤣
It’s important to find a
baker broker that is committed to execution quality and transparency.
In other words, the broker should be committed to treating you fairly when it executes your orders.
Batman and Spider-Man
Let’s revisit a part of the earlier story with Batman and Spider-Man:
I’m betting that it’ll go up from 1.4100, its current price. Here’s my $20 to open the bet.
Spider-Man suddenly spidey senses that GBP/USD will continue to rise so he tries to stall by pretending not to hear Batman.
Hello? Did you hear me? Unlike snakes, spiders aren’t deaf. Here’s my $20 to open the bet.
What was that? So you do want to open a bet? My price for GBP/USD has changed. It’s at 1.4150 now. You still want to make the bet?
Dude, what the hell. I thought you said GBP/USD was at 1.4100. Now you change the price all of a sudden?
That’s my new price. So are you in? Better hurry, before I change my price again.
Fine. I’m in. I bet it’ll go up from 1.4150.
Notice how Spider-Man originally offered to “fill” Batman’s order at 1.4100, but then all of sudden changed the price to 1.4150.
Batman was “slipped” by 50 pips. That ain’t cool.