GKFX offers its clients various types of trading accounts, each of which has its own unique features.
Below are listed the main methods of execution and the specific features of each one.
Market Execution (orders processed with external counter parties)
- The client sends a market order to GKFX (a market order does not specify a specific price but is rather an order to buy at the current market price).
- GKFX sends the order to an external liquidity provider.
- The liquidity provider executes the order and sends GKFX a record indicating the price at which the order was filled. In rare instances an external liquidity provider may not execute the order (for example, due to insufficient liquidity) send a rejection back to GKFX. In this case, GKFX also rejects the client's order.
- GKFX provides the client with confirmation of the price at which the order was actually processed (this price may differ from the one displayed on the client's screen when the order is submitted).
Market Execution (matching clients within ECN)
- The first client sends a Limit Order to GKFX which is entered into the system and can be seen by other clients.
- The second client sends an offsetting market order to GKFX. If the first client’s order is within the spread, the second client’s market order is matched with it.
- The first client receives confirmation of execution of a limit order at the requested price.
- The second client receives confirmation of execution of a market order at the price of the first client’s limit order. Essentially, both clients’ orders were executed without spread.
Instant Execution (orders sent to external counter parties)
- The client sends an Instant Order to GKFX (an Instant Order is an order to buy the specified price)
- GKFX sends a Fill-or-Kill (meaning fill entire order or else cancel) limit order to its external counter party at the requested price and with an expiration time of a few seconds.
- The counter party either executes the order completely and sends back a record of the order or else sends a rejection back (if it was unable to execute the whole order at the specified price).
- If the external counter party returns a record of execution, GKFX then sends the client a confirmation of execution at the specified price. However, if the counter party returns a rejection, GKFX gives the client a requote (offer to send the order again, possibly at a new price). Any amount of acceptable slippage that the client indicates in the order will be added to the order level provided by GKFX to the counter agent. This reduces the likelihood of a requote.