Why prompt execution is important for Forex trading?
The criteria for selecting a broker for your forex trading are many. Competitive execution is one of them, and, quite important one. These days, you will find brokers who offer a spread of as low as 1 pip. Less spread means less cost and more profit for you.
In auto forex trading, ESP dealing or Executable Streaming Price feed is extremely important for a substantial profit. If a broker can bypass the step of request for quote, it results in better and faster execution. Most of the investors do not realize how much they lose using request for quote system. Brokers however directly benefit from this method of execution.
In the request for quote method, the client clicks on ‘bid’ or ‘ask’ to inquire for a quote and makes his or her intention clear to the broker. Once the broker realizes the investor’s intention, he or she may quote a bad quote. The investor accepts it as the difference remains minimal in his eyes. But once this continues for few trades, it adds up to quite a big amount.
But if you have the executable streaming price with you, you just click once to trade. With ESP, the investor clicks on ‘bid’ or ‘ask’ to execute immediately and the transaction is done. This is undoubtedly the most competitive way of trading forex. With prompt execution, you get the quote you clicked. A good forex dealer with ESP can ensure that your orders like limit, stop, or trailing stop are executed in all market conditions, without any slippage.