Execution speed
Family V · Platforms
Not to be confused with market execution, order execution.
Execution speed is the elapsed time between a trading platform submitting an order and the venue or counterparty acknowledging it. It is typically measured in milliseconds, and reported figures vary by broker, order type, and infrastructure. Execution speed is distinct from price improvement or slippage, which concern the price obtained rather than the time taken.
What execution speed measures
Execution speed covers the interval from order submission to acknowledgement. It is influenced by network latency between the client and the broker's server, the broker's internal routing, the liquidity provider's response time, and the order type. Market orders are generally acknowledged faster than limit orders that rest in the book, and stop orders add a trigger step before submission. Because these components differ by broker and by venue, no single execution-speed figure applies universally.
Worked example
Reported figures and comparisons
Brokers sometimes publish average execution speeds, but the measurement method, sample period, and order mix are not standardised, so figures are not directly comparable across firms. Execution speed also varies by account type, server location, and market conditions. A figure quoted for one instrument or session does not necessarily apply to another.
Often confused with
- market execution
- Market execution is a fill model in which orders are executed at the best available price without requotes, whereas execution speed is the time taken to receive an acknowledgement; the visible sign is that market execution describes how an order is filled, not how long it takes.
- order execution
- Order execution is the broader process of filling an order, including price and quantity, whereas execution speed is only the time component of that process; the visible sign is that order execution is discussed in terms of fills and prices, not milliseconds.