The process of placing and completing a buy or sell order in the market at the desired price.
Why It Matters
- 1Execution speed and accuracy directly affect trade outcomes.
- 2Poor execution can result in slippage, missed opportunities, or unintended losses, especially in fast-moving futures markets.
Example
A trader places a market order to buy a futures contract at 4,500. The order is executed immediately at the best available price, completing the trade in real time.
Common Mistakes
- ✖Assuming all orders are filled at the requested price
- ✖Ignoring slippage during volatile market conditions
- ✖Using incorrect order types for the trading strategy
- ✖Failing to monitor execution during high-volume sessions