Difference Of Market Execution And Instant execution In MT4

There is a little difference between market execution and instant execution in meta trader 4 forex trading platform of the brokers .

type of forex brokers

STP brokers use Market execution, which doesn’t allow stop loss and take profit orders to be specified & set at the moment of placing a new trade. SL and TP orders can be added only after the trade is open, so that the price of the open position is already known. A trader then needs to modify an existing trade to add stops and profit targets.

Dealing desk brokers use Instant Execution, which allows stop loss and take profit orders to be set with the initial entry order.
A Question From A Trader:
I noticed that some of the brokers disabled instant execution from the MT4 platform i.e, before with the instant execution option you could enter the trade with a stoploss amount. Now they replaced it with Market execution or pending order option. So if you choose market execution they have the stoploss option greyed out and you have to then enter trade without a stoploss. Then you have to modify the order to add a stoploss. I don’t like this one bit. It’s like walking a tightrope without a safety net. What happens if the market spikes before you get a chance to modify it? Or you loose connection with broker before you add a stoploss. Do you have any idea why they are doing this?

The answer is in MT4 ->STP (ECN) bridge technology, which doesn’t allow Instant execution mode. Apparently, in STP technology they don’t allow any modification to the order before it’s filled.

You’re right about risks that trades face when entering without stops. That can be viewed as a definite disadvantage of MT4 STP/ECN. Dealing desks brokers, on the other hand, provide Instant Execution.