When trading on Exness, there are two types of execution methods: the DD method and the NDD method. Forex companies use two types of methods to execute contracts. This is trading related, so it’s good to know.
DD method and NDD method
Forex companies use one of these two methods. Classification is based on whether there is intermediary/intervention by the FX company’s dealer. In fact, the services provided by different FX operating companies are different. Exness is a broker that adopts and configures the DD method. Although there are no bonuses or campaigns at Exness, it has a good reputation among many users because it has a narrow pips, handles currency pairs and virtual currencies, and does not have loss cuts until the margin is zero. When choosing an FX broker, it is best to judge and choose which one is better.
The DD method is the Dealing Desk method. In the DD method, a FX company dealer intervenes between the customer and the interbank.
Features of the DD method
The DD method is a contract method used by many Forex companies. Take customer orders. Place a percentage of orders to the interbank at the dealer’s discretion. This percentage varies by company, but is said to be around 3% to 15%.
The NDD method is the No-Dealing Desk method. In the NDD method, the customer and the Internet are directly connected, and there is no intervention of the FX company dealer.
Characteristics of the NDD method
Pass client orders through the interbank without forex dealer intervention. The profit of the company adopting the NDD method is derived from the transaction fee from the customer’s transaction. As a Forex company, we prefer traders with a large number of transactions and transaction volumes. We want our customers to win through trading and increase the number of trades and the volume of trades. Therefore, in principle, scalping and the use of EA are not prohibited.
Exness is NDD
Exness has four account types, only the professional account uses Instant Execution, and the other accounts use Market Execution. Both must be highly transparent NDD methods. Above all, the reliability of the operating company is the most important. The most important point is to earn money using a highly transparent and safe company. Therefore, there are some dubious investment companies, so be careful.
Features of Market Execution
Market Execution refers to the method by which Forex brokers send orders directly to banks and liquidity providers. It is this Market Execution that is adopted in ECN account. At Exness, this Market Execution is adopted in 3 accounts: standard account, raw spread account, and zero account. Since the order is sent directly to the market and the company does not touch the order, there is no refusal of the contract. On the other hand, on the other hand, slippage occurs when there is a time lag from order placement to execution when the liquidity is low or during periods of sudden market fluctuations.
Features of Instant Execution
Instant Execution is a method in which the FX company settles the order once and completes the order immediately. In principle, traders’ orders do not flow directly to the market, with the method of offsetting orders from traders and ordering only the remaining orders to banks and liquidity providers. Slippage is virtually non-existent because orders and payments are processed instantly. Exness uses Market Execution only for professional accounts.
Market or Instant?
It is not possible to decide which is better or worse between Market Execution and Instant Execution, so it is important to understand the characteristics of each and choose the one that suits your trading style. Market Execution is ideal for those who want to ensure execution because slippage is likely to occur and requotes do not occur. With Instant Execution, orders are filled instantly, so slippage is virtually non-existent. Requotes may occur depending on the market environment.
|Market Execution||Instant Execution|
|slippage||likely to occur||rarely happen|
|Requote||doesn’t happen||happens occasionally|
|trade style||day trade|
You can open an account for free with Exness
There are many FX brokers offering different services such as gemforex, bigboss, xmtrading, titanfx, and easy markets, but among them, Exness allows you to open an account for free and has a low spread. It also has excellent operability, so even those with little knowledge can trade intuitively. We have a wide variety of financial products such as precious metals, gold, CFDs, and Bitcoin.