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Trading Glossary

Execution

Basics

What it means

The whole process of getting your order filled: routing it, matching it, and reporting the trade back to you. Good execution means fast fills at fair prices.

Example

A marketable limit order to buy 500 SPY shares might execute in under 100 milliseconds across several exchanges, filling 300 at $450.01 and 200 at $450.02.

Mistake beginners make

Beginners blame "the broker" for bad execution when the real cause is using market orders in illiquid names. Order type, not the broker, usually decides fill quality.

Related terms

  • Order — An instruction you send to your broker to buy or sell an asset. The order specifies what t…
  • Fill — The moment your order is matched and executed. The fill price is the actual price you got,…
  • Slippage — The difference between the price you expected and the price you actually got. It happens w…

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