Order Execution Policy
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1. Introduction
G2G Group Limited (hereafter referred to as “the Company”) is dedicated to delivering transparent and equitable execution of client orders.
This Execution Policy outlines the principles and procedures governing the execution of client orders and is designed to ensure the best possible
outcome for our clients under various market conditions.
2. Execution Method
The Company employs a Straight Through Processing (STP) method
which typically refers to the method of routing trades directly through the broker’s servers to liquidity providers without re-entry and without
any dealing desk intervention.
3. Order Types
a-Market Order
A market order is an instruction to buy or sell a financial instrument at the current market price.
The order is executed at the Volume-Weighted Average Price (VWAP) at the time of execution.
Market orders are typically executed immediately.
b-Pending Orders
orders that are not executed immediately but are triggered when certain conditions are met.
c-Stop Orders
A stop order is placed at a specific “stop price.” Once the market reaches the stop price
the stop order is triggered and becomes a market order which is executed at the prevailing market price
If the stop order is not triggered, it remains pending in the system.
d-Stop Loss
A stop loss order is used to minimize losses. It is placed at a “stop loss price.” Similar to a stop order, when the market reaches the stop loss price
it becomes a market order and is executed at the next available market price. If not triggered, it remains pending in the system
e-Limit Orders
A limit order is an order to buy or sell an instrument with a restriction on the maximum price to be paid (with a buy limit) or the minimum price
to be received (with a sell limit). If the order is executed, it will only be at the specified limit price or better. However
there is no assurance of execution. If not triggered, it remains pending in the system.
f-Take Profit
A type of limit order that specifies the exact price at which to close out an open position for a profit.
If the price of the traded instrument does not reach the limit price, the take-profit order does not get executed.
If not triggered it remains pending in the system.
Order Execution Policy
4. Order Routing
All client orders are routed through an order execution engine to ensure appropriate and swift execution.
The Company ensures that orders are handled and executed in line with market executions and rates received from liquidity providers.
No manual execution is conducted, and all orders are routed through an automated process.
5. Slippage
Slippage
Slippage is the difference between the execution price and the requested price of a pending order or market order.
Various factors can cause slippage, including low market liquidity, high volatility, and the size of the trade.
Slippage is a natural occurrence in trading and can be positive or negative. It results from market conditions and the prices
received from liquidity providers.
Market Gaps
In the event of a market gap, orders will be filled at the available price after the gap has triggered the order.
Market gaps typically occur on market opening after weekends or trading breaks, during news releases, or significant events.
Liquidity Shortage
In certain situations, available underlying liquidity may be lower than typical, resulting in non-executable prices for larger trades.
This means that while a trade may be confirmed at the top of the book price, the underlying execution may have experienced slippage.
In such situations, the execution price you received may be adjusted to reflect the available liquidity in the market.
6. Special Conditions
Clients may request special trading conditions, such as larger maximum trade sizes or different order routing. In such cases
clients will be informed that changes in conditions may lead to increased slippage or less favorable executions.
Clients must provide their consent to these potential risks through email or a recorded telephone conversation..
7. Review and Updates
This Execution Policy will be reviewed periodically to ensure its effectiveness and compliance with regulatory requirements
Any updates or changes will be communicated to clients as necessary.
9. Conclusion
G2G Group Limited is committed to providing clients with fair and transparent execution of their orders.
This Execution Policy serves as a guide to our practices and is designed to protect the interests of our clients
while adapting to changing market conditions.