- 31 Mar 2023
- 2 Minutes to read
Trading order execution
- Updated on 31 Mar 2023
- 2 Minutes to read
A trade's ''journey''
When a client sends an order from their trading platform, it starts a ''journey'' until it is finally accepted and executed by one of our liquidity providers.
How a trade is executed depends on whether the asset is traded over the counter (OTC) or on an exchange. Currencies and contracts for differences (CFDs) are -for the time being- traded over the counter.
How are orders executed at Darwinex Zero?
Here is the ''journey'' that Forex and CFD trades undergo at Darwinex Zero.
1. Sending the order from the trading platform
When a trader wishes to trade they must send the order from their trading platform, together with the volume required.
Depending on where the order is sent from, and the trader's Internet connection, this can be delayed by an average of between 100 and 200 milliseconds.
2. Arrival to the broker's central server
The order travels via Internet to our server.
In the case of Darwinex Zero, the central server is located in Equinix LD4, London.
3. Requesting the best available price
Once the order has arrived to the server, our Prime Broker offers the best price available at that moment from all of the prices offered by the liquidity providers that act as a counterparty.
Darwinex Zero offers liquidity from more than 20 different providers, including the world's most important banks, who have up to 200 milliseconds to accept the trade.
4. Acepting the trade and trade execution
Once the trade is accepted the relevant accouting entries are produced so the trade is recorded, meaning the trade is confirmed and executed.
During this process, the price at which the order is executed could have varied for two reasons:
- Latency. From the time that the order is sent until it is executed there is a time delay, or latency. During this time interval, the asset price may have moved, in your favour or against you.
- Market depth. If at the moment that the trade arrives to the market there is not enough volume at the best available price, the trade ''sweeps'' market depth at the different price levels available until the trade is completed for all of the requested volume. This means that the final price obtained will be a weighted average of the best prices available given underlying asset liquidity.
The execution on trading accounts at Darwinex Zero is similar to any trading account funded with real funds under real execution and liquidity conditions