What is Continuous Execution from TFB?
Author: Alexey Kutsenko
This week, we will talk about Continuous Execution - a feature built into the Trade Processor liquidity bridge. We will share what it is, what it does, and why it is beneficial to all brokers.
Continuous Execution is a feature that allows you to process large orders with the best pricing.
Whenever a large order is placed, there is a risk that there will not be enough liquidity on the market, and the order will wipe it out completely. Naturally, when this happens, the price is not optimised, and both broker and trader get poor execution conditions.
Continuous Execution ensures that doesn’t happen.
How it works
With Continuous Execution, large orders are split into smaller ones and executed over a period of time with more favorable pricing. Once the last part of the order is executed, the system merges them all back together and calculates the volume-weighted average price (VWAP).
Why you need it
Using Continuous Execution means that orders will have a higher chance of complete execution with a better end pricing. The order might take longer to execute, but the price and the filling ratio will be higher, making your client happier. To use the feature, brokers need to set the threshold for the order size.
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