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Trading order execution

How a trade is executed depends on whether the asset is traded over the counter (OTC) or on an exchange.

A trade's journey

When a client sends an order from their trading platform, it starts a ''journey'' until it is finally accepted and executed by one of our liquidity providers.

How a trade is executed depends on whether the asset is traded over the counter (OTC) or on an exchange. Currencies and contracts for difference (CFDs) are currently traded over the counter.

How are orders executed at Darwinex Zero?

Here is the ''journey'' that Forex and CFD trades undergo at Darwinex Zero.

  1. Sending the order from the trading platform
    When a trader wishes to trade, they must send the order from their trading platform together with the required volume. Depending on where the order is sent from and the trader's internet connection, this can be delayed by an average of 100–200 milliseconds.
  2. Arrival at the broker's central server
    The order travels via the internet to our server. At Darwinex Zero, the central server is located in Equinix LD4, London.
  3. Requesting the best available price
    Once the order arrives at the server, our Prime Broker identifies the best available price from all prices offered by the liquidity providers acting as counterparty. Darwinex Zero offers liquidity from more than 20 different providers, including the world's most important banks, who have up to 200 milliseconds to accept the trade.
  4. Accepting the trade and confirming execution
    If a liquidity provider accepts the trade within the 200-millisecond window, the order is filled at the agreed price. If no provider accepts within that window, the order may be rejected or re-quoted. Once accepted, the relevant accounting entries are produced, the trade is recorded, and execution is confirmed.

During this process, the price at which the order is executed could have varied for two reasons:

  1. Latency. From the time that the order is sent until it is executed there is a time delay, or latency. During this time interval, the asset price may have moved, in your favour or against you.
  2. Market depth. If at the moment that the trade arrives to the market there is not enough volume at the best available price, the trade ''sweeps'' market depth at the different price levels available until the trade is completed for all of the requested volume. This means that the final price obtained will be a weighted average of the best prices available given underlying asset liquidity.

Order execution on Darwinex Zero accounts replicates the conditions of a live funded account, including real market liquidity and genuine execution dynamics.