No, iForex does not re-quote any orders but iForex will simply reject the orders if there is no available price for your order.
Fixed spread comes with limitation
iForex offers fixed spread for all trading instruments, and there are several things you can benefit from that. For example:
- Hedging perfectly without worrying about the change of spread
- Calculate the profit/loss and margin requirement easier etc
But you may need to know that there are more restrictions on the trading than variable spread’s one.
The fixed spread demerits would be:
- the spread sometimes gets wider when the market volatility is high
- you can not execute an order if there is no available liquidity at the price displayed in the platform(FXnet Trader)
No rejections on variable spread
Brokers which provide variable spread trading environment do not reject orders as the brokers will execute the orders even there is no available liquidity at the spread displayed in its platform.
This will cause the orders to be executed at the different prices, so called slippage.
iForex does not execute a order if there is no available price in the market, so it will simply reject the orders.
Traders can benefit from the trading condition.
Slippage could happen also in FXnet Trader
Every financial market is subject to slippage, as there is always the market liquidity involved in the tradings.
Slippage, Re-quote and order rejections are all different things.
|Slippage||When your order gets executed at the different prices than you have requested.|
|Re-quote||When there is no liquidity at the price you have requested, your broker will give you another price available and you need to confirm the execution.|
|Order rejection||When there is no available price in the market and your broker simply reject your order so your orders don’t get executed at different prices than you have requestted.|
Slippage on stop loss
Slippage even could happen when you have specified the stop loss price on your positions.
Slippage happens when there is no available liquidity for your order to be executed, so if the price changes fast and there is no liquidity when the stop loss triggers, slippage happens.
It is not on your broker’s decision to make if the slippage happens or not, but it is the way of financial markets.