Fills on Large Orders
Effective June 10, 2007
No Restrictions on Maximum Order Sizes
The FXCM Trading Station II allows for order sizes up to 50 million per trade. Traders have the ability to trade incremental sizes (multiple orders of up to 50 million for the same pair).
Place Orders of $10 Million or $50 Million with No Dealing Desk Execution
Clients have the ability to trade large order sizes; however, partial fills can occur. Clients who want the entirety of their orders filled should use "At Market" price execution. Our liquidity providers,§ stream quotes that are valid for different liquidity amounts. One liquidity provider may provide a price that is good for $2 million and another for $5 million. In order to provide clients with the best available price for large orders, client orders may be executed from prices provided to FXCM by multiple liquidity providers. These prices include our mark-up, which may vary based on account type and liquidity provider.
The execution for all types of large orders is new. Large orders may be partially filled or broken into smaller units; these units may be filled at different price levels. The execution methodology for large orders will fall into four categories: 1) Market Range, 2) At Market, 3) Stop Entry, and 4) Limit Entry. Read below for details on how each type of order is executed.
Clients have a choice on how their market order is executed: "Market Range" or "At Market" Price.
The default setting is Market Range at zero. The order will be filled only at the price or within price ranges specified by the trader. The number to the right of Market Range allows you to set the range (in pips) from the current rate that you will accept a fill. Partial fills may occur, and any part of the order that cannot be filled will be cancelled.
Q: When I use a Market Range order, how do I know how much of the order has been filled?
A: You can see the number of lots executed by checking the "Open Positions" window, for new positions or changes to existing positions.
Making a Market order to buy 30 100K lots of GBP/USD with the "Market Range" set to "0".
20 lots are filled at your price, but the additional 10 lots cannot be filled at this price at this time, so the remaining 10 lots are canceled and disappear. You will receive a message informing you that part of your order could not be filled as specified, and then you will see the 20 executed lots in the "Open Positions" window.
"At Market" Price
The entire order is filled at the best prices available at that time. These prices include our mark-up, which may vary based on account type and liquidity provider. The order may be filled at multiple prices.
20 lots are filled at 2.0027, and the next 10 lots are filled at the best available price, which in this case is 1 pip worse.
Stop and Limit Entry Orders
These orders are always done at the prices specified by the trader. If only part of the order can be filled at the price, the remainder of the order will continue to appear in the Orders window
Limit Entry order for 30 100K lots of EUR/USD at 1.3610. Because of limited liquidity, only 20 lots are able to be executed, and they appear in the "Open Positions" window.
The remaining 10 lots wait in the "Orders" window for 1.3610 or better to be quoted again.
5 minutes later, 1.3610 is quoted again, and the remaining 10 lots are filled, creating a new ticket.
Closing a Position with a Market Order
The same options for Market orders to open new positions are available for Close Orders, and execute in the same manner.