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In trading, execution is the completion of a buy or sell order from a trader. It is carried out by a broker.
Execution definition
In trading, execution is the completion of a buy or sell order from a trader. It is carried out by a broker.
When you tell your broker to buy or sell a particular asset, they will decide the best way of completing your request as quickly as possible. When the order is finalised and your trade is completed, it has been executed.
Executing different types of orders
Different types of orders will have different parameters for execution. Day orders, for example, will not be carried out if they cannot be executed on the day that they are placed. Good-‘til-cancelled (GTC) orders, on the other hand, can be executed at any point until the trader revokes the order.
There are various ways in which brokers can carry out orders. They can send a request to the floor of an exchange, make the trade with a market maker, or complete the trade digitally. Alternatively, if the broker already has the means to carry out the trade in its own inventory, it can execute the trade that way.
Read more about share dealing
The value of shares, ETFs and ETCs bought through a share dealing account, a stocks and shares ISA, a SIPP or an IG Smart Portfolio can fall as well as rise, which could mean getting back less than you originally put in. Spread bets and CFDs are leveraged products and can result in losses that exceed deposits. Spread betting and CFD trading are not permitted within the IG SIPP. Please ensure you fully understand the risks and take care to manage your exposure.
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