Execution Model
RockGlobal operates an agency-style execution model. Orders are executed based on available market pricing and prevailing liquidity at the time of execution. Execution outcomes are determined by market conditions rather than broker discretion.
How Execution Works
Order submission
Order details are sent to the market for execution.
Price discovery
The platform identifies the best available prices at the time of submissio.
Liquidity assessment
Available volume at price levels is evaluated.
Execution outcome
The order is filled, partially filled, or not executed.
How prices and spreads are formed
Prices shown on the platform reflect aggregated market pricing derived from available liquidity. The spread represents the difference between bid and ask prices and is not fixed.
Bid price
Ask Price
The ask price represents the lowest price currently available in the market at which participants are willing to sell an instrument. It reflects available supply and adjusts continuously with changes in liquidity and market activity.
Spread
The spread is the difference between the bid and ask prices. Spreads are not fixed and may widen or narrow depending on factors such as market liquidity, volatility, time of day, and prevailing trading conditions.
Market depth
Market depth indicates the volume of available liquidity at different price levels. Greater depth generally means more volume is available near the current price, while limited depth may increase the likelihood of price movement or partial fills during execution.
| Pricing component | What it represents | What affects it |
|---|---|---|
|
Bid Price |
Price buyers are willing to pay |
Demand, liquidity, volatility |
|
Ask Price |
Price sellers are willing to accept |
Supply, liquidity, volatility |
|
Spread |
Difference between bid and ask |
Liquidity, volatility, market conditions |
|
Market depth |
Available volume at price levels |
Participation, order flow, time of day |
Liquidity and its impact on execution
Liquidity describes the availability of buyers and sellers at specific price levels. Execution quality depends on both the depth and stability of liquidity.
Normal liquidity
Higher participation and more stable pricing.
Reduced liquidity
Fewer orders and increased price sensitivity.
Volatile liquidity
Rapid changes in pricing and available volume.
Understanding slippage
Slippage occurs when an order is executed at a price different from the requested price. This reflects changes in market prices or liquidity between order placement and execution.
Fast-moving markets
In fast-moving markets, prices can change rapidly between the time an order is submitted and when it reaches execution. If available prices move during this interval, the order may be filled at the next available price rather than the originally requested level.
Fast price movement can occur during periods of heightened activity or sudden changes in market sentiment.
News events
Economic announcements, data releases, or unexpected news can cause rapid shifts in pricing and liquidity. Market participants may adjust or withdraw orders in response, reducing available liquidity at previously displayed prices.
As a result, execution may occur at different price levels than those observed at the time the order was placed.
Gapping markets
Market gaps can occur when prices move from one level to another without trading at intermediate prices, often during market opens or periods of reduced liquidity. When depth is limited, there may be insufficient volume available at the requested price level.
In such cases, orders may be executed at the next available price or only partially filled, depending on available liquidity.
Order types and execution behaviour
Different order types interact with market conditions in different ways. Execution behaviour depends on order instructions and prevailing market conditions.
Market orders
A market order is executed at the best available price at the time it reaches the market. The execution price depends on available liquidity and prevailing market conditions and may differ from the price displayed when the order is submitted.
Limit Order
A limit order is an instruction to execute at a specified price or better. The order will only be filled if sufficient liquidity is available at the limit price. If the market does not reach that price level, the order may remain unfilled.
Stop Orders
A stop order becomes active once the market reaches a specified trigger price. After triggering, the order is typically executed as a market order and is subject to the prices and liquidity available at that time.
Stop limit Orders
A stop-limit order combines a trigger price with a defined limit price. Once triggered, execution will only occur within the specified price range. If market conditions move beyond the limit price, the order may not be filled.
What RockGlobal controls and what it does not
Some aspects of execution are within RockGlobal’s operational control, while others are driven entirely by market conditions.
Within broker control
Order routing processes
RockGlobal manages how client orders are transmitted from the trading platform through its execution infrastructure to available market pricing and liquidity sources.
Platform stability and availability
RockGlobal is responsible for maintaining the reliability and availability of its trading platform and related systems, subject to scheduled maintenance and technical constraints.
Operational monitoring
Execution activity is monitored to identify technical issues or abnormal behaviour. Monitoring supports operational oversight but does not influence market pricing or execution outcomes.
Market-driven factors
Liquidity availability
The volume of available buy and sell orders at specific price levels is determined by market participants and may change rapidly.
Volatility and price gaps
Price movement, sudden volatility, and gaps occur as a result of market activity and external events and are outside the broker’s control.
Execution timing and depth
Execution timing and the depth of available liquidity depend on market conditions at the moment an order reaches the market, including participation levels and order flow.
Execution-related risks
Execution risk is inherent in trading and includes risks related to volatility, liquidity, timing, and order size. RockGlobal does not guarantee execution at requested prices or within specific timeframes.
Further information
Some aspects of execution are within RockGlobal’s operational control, while others are driven entirely by market conditions.