No Dealing Desk Forex Trading Execution
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Forex Price Improvements

Positive Slippage

WHAT'S NEW? Friedberg Direct has enhanced its No Dealing Desk forex execution by adding Price Improvements on all TSII orders.* Now these orders can receive positive slippage, as all orders fill with our best available price.

Learn about Price Improvements
Price Improvements: How do they work?
Videos
  • Price Improvements: What are they? How do they work?

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  • Weekend Gaps: Learn how you can receive Price Improvements from weekend gaps.

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  • News Traders: Learn how you can receive Price Improvements during news releases.

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  • Scalpers: Find out how Friedberg Direct's Price Improvements can benefit you.

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Times Are Changing

No dealing desk Execution without Price Improvements

A common inconvenience to most No Dealing Desk execution models is that for example limit and limit entry orders always fill at the limit price—even if the market price gaps or spikes favorably through it. At the same time, stop orders can fill at a worse price.

No dealing desk Execution with Price Improvements

With Price Improvements all orders can receive positive slippage.* This means you can potentially make more money if the market gaps or spikes favorably through your limit price. This is especially true in situations where the market is moving fast (e.g., during weekend gaps or around news events).

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Frequently Asked Questions

1) What is a Price Improvement?
When an order fills at a better or more favorable price than the price you request, it is considered a Price Improvement. For example, if you create an entry order to buy EUR/USD at 1.3470 and the order fills at a more favorable price of 1.3465, you have received a 5 pip Price Improvement.
2) How do Price Improvements work?
With the No Dealing Desk Forex execution model, relationships with several liquidity providers,§ financial institutions, and other market makers compete to provide us with pricing. That means multiple price providers could be quoting the same currency pair at the same time. Therefore, Liquidity Provider A may provide a quote that triggers your order; however, Liquidity Provider B may immediately provide a more favorable quote than Liquidity Provider A's. If this happens and order on the Trade Station II has not yet filled, our No Dealing Desk model will automatically fill your order at Liquidity Provider B's more favorable price, even though Liquidity Provider A's quote originally triggered your order for execution. And as a consequence you get a Price Improvement.
3) Which order types can receive Price Improvements?
Price Improvements are available for all orders. Price Improvements may not be available to ECPs. All price improvements are subject to available liquidity. Please note that Price Improvements are not available for market orders when "Market Range" is set to zero.
4) What is the most likely way to receive a Price Improvement?
Price Improvements most frequently occur during fast moving market conditions. The two most notable trading times where you can benefit from Price Improvements are during:
1) Weekend Gaps*
2) News Releases*

5) How can I tell if I have received a Price Improvement?
With limit and limit entry orders types, you define an "entry" or "exit" price when creating the order. Therefore, if the order executes at a better price than the price you defined in the order, you will know that you received a Price Improvement by comparing your defined price to the actual executed price.
6) Can I get a Price Improvement trading news events?
Yes. To learn more about this contact one of our platform specialists.
7) Can I get a Price Improvement from weekend gaps?
Yes. To learn more about this contact one of our platform specialists.
8) Can I get a Price Improvement scalping?
Yes. To learn more about this watch our Scalpers video.

Best Practices

Use Limit and Limit Entry Orders

Friedberg Direct recommends that traders use limit entry orders to open positions and limit orders to close positions.

Why? With these order types you can only receive your requested price or better.

VIDEO: Learn valuable forex trading tips. What are limit and limit entry orders? When should I use them?

How to MAXIMIZE POSITIVE SLIPPAGE*

USE LIMIT AND LIMIT ENTRY ORDERS

Friedberg Direct recommends opening and closing trades using limit and limit entry orders in most cases. The benefit to these order types is that you are guaranteed to receive your requested price or better without receiving negative slippage. Remember, that although limit orders guarantee price they do not guarantee execution making order types an important consideration in any trading decision.

MARKET CONDITIONS

The most likely times to receive positive slippage will be around news releases, during weekend gaps, and generally during fast moving market conditions. Traders who prefer to trade in these market conditions, which are typically more volatile, should consider using limit and limit entry orders. This will ensure that if you enter into trades, you will only receive your requested price or better.*

TRADING STRATEGIES

There are specific trading strategies and market approaches that may increase your chances of receiving positive slippage. The DailyFX course instructors cover a few of these trading strategies and provide a format for you to ask questions at our strategies web page. View Strategies

Avoid Negative Slippage

How to minimize Negative Slippage

USE MARKET RANGE ORDER TYPES

When trading with market orders, Friedberg Direct recommends setting the order type to "market range," to avoid potentially receiving negative slippage. A market range order type allows you to control the amount of slippage your order can receive when it executes allowing for price certainty (see image to the right).

A market range of "X" pips assures that all or part of your order will be filled within a "X" pip range of the current market price ("X" pips above or "X" pips below) if liquidity is available.

Market Range Example: Assume you place a market order to buy five million units of EUR/USD with a market range of five pips. When the order triggers for execution, one of the following three scenarios can occur:

  1. Scenario 1 :

    No liquidity is currently available within a 5 pip range. The execution halts and the order is automatically canceled.

  2. Scenario 2 :

    Only three million is currently available within the 5 pip range. Three million of your order executes within the 5 pip range. The remaining two million is automatically canceled.

  3. Scenario 3 :

    Ten million is currently available within the 5 pip range. The entire five million executes within the range you have specified.

*All Price Improvements are subject to available liquidity. Please note that Price Improvements are not available for market orders when "Market Range" is set to zero.

Any opinions, news, research, analyses, prices, or other information contained on this website is provided as general market commentary, and does not constitute investment advice. Friedberg Direct will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.