An "instant execution" refers to a trading method in financial transactions where an order is immediately executed at the specified price.
Specifically, when a trader places a buy order (long) or a sell order (short), it means that the order is immediately executed in the market. At the moment the order is issued, the trade is executed at the specified price or a price close to it, and the position is established.
The characteristic of a limit order is that the trade is executed at the price where the order was placed, ensuring the price is guaranteed. Traders can specify a target price when conducting a trade and secure the execution at that price.
However, depending on market liquidity and order volume, immediate execution at the specified price may be challenging. Especially during sudden market fluctuations or when the order volume is low, the execution price might experience slight variations. In such cases, slippage (the difference between the execution price and the actual price of the trade) may occur.
Limit orders are commonly used in many trading platforms and brokerage firms, and they are an essential trading technique for traders. Proper utilization of immediate execution is required, depending on the trading strategy and market conditions.
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