Introduction
The Method Behind Every Entry
Every trade has two parts: The idea and the execution.
You can have the perfect setup,
but if you execute it wrong,
the market won’t forgive it.
Smart Money doesn’t just decide where to enter,
they decide how.
Through the right execution type,
they control timing, precision, and risk.
What Are Execution Types in Trading?
The Definition:
Execution type simply means how your order reaches the market.
There are three main types:
1️⃣ Instant Execution
2️⃣ Market Execution
3️⃣ Pending Orders
Each behaves differently,
and understanding them defines how precise your entries become.
Instant Execution
📍 Definition:
Instant Execution means your broker fills your order immediately at the price you click.
If that exact price isn’t available,
you’ll receive a re-quote.
The broker asks if you want to continue at the new price.
💡 Used mostly in fixed-spread environments.
Example:
- You click Buy EUR/USD at 1.10000.
- If price moves to 1.10002 before execution,
you get a requote or rejection.
✅ Pros:
- Price certainty.
- Useful in calm markets.
❌ Cons:
- Requotes during volatility.
- Missed entries when market moves fast.
Market Execution
📍 Definition:
Market Execution fills your order at the next available price.
You don’t choose the exact fill,
you accept whatever the market gives you.
💡 Used in most ECN and raw-spread environments.
Example:
- You click Buy EUR/USD, expecting 1.10000.
- Market moves: fills at 1.10003.
- That’s slippage.
✅ Pros:
- Fastest entry.
- Accurate reflection of true liquidity.
❌ Cons:
- Possible slippage.
Less control over exact price.
📍 Smart Money uses market execution when timing and momentum matter more than precision.
Pending Orders
📍 Definition:
Pending Orders are instructions to enter the market only when price reaches a specific level.
Types include:
- Buy Limit: Enter when price drops to your chosen level.
- Sell Limit: Enter when price rises to your chosen level.
- Buy Stop: Enter when price breaks above your level.
- Sell Stop: Enter when price breaks below your level.
💡 Used for planned, rule-based setups.
✅ Pros:
- Precision.
- Discipline.
- No need to watch charts constantly.
❌ Cons:
- Missed entries if price reverses before trigger.
- Fill slippage in fast-moving markets.
The Do Nots
Common Mistakes Traders Make
❌ Using market execution during news spikes → unpredictable fills.
❌ Overusing pending orders without context → missed opportunities.
❌ Relying on instant execution → requotes and frustration.
❌ Not journaling execution type → no clarity on what works.
💡 Smart Money tracks every variable, including how they enter the market.
Final Thoughts
Execution type defines how your idea becomes action.
Each type serves a purpose,
but mastery means knowing when to use each.
Smart Money doesn’t just react to price,
they plan every click, every fill, every order.
Control your execution,
and you control your outcome.