BROWSE

Manual Execution

What is 'Manual Execution'

A method of trading with the help of a dealer or broker, versus trading automatically. Manual executions tend to be slower than automatic ones, in which trades are inputted quickly and often in real time, thus giving investors a time advantage. Different fees are charged by exchanges for manual executions versus automatic executions.

Explaining 'Manual Execution'

Securities traded manually require several extra steps to process the trade and can take several minutes to actually be executed. Since stock and forex markets are so fast paced where millions of transactions are done in minutes and the price of a stock or currency can rise or fall almost instantly, a manual execution could place investors at a disadvantage.


Further Reading


Dimensions of execution quality: Recent evidence for US equity markets
www.sciencedirect.com [PDF]
… Each market center separately reports the number of shares executed on its market and shares executed elsewhere but provides only aggregate execution-quality measures, regardless of where orders execute …

A taxonomy of automated trade execution systemsA taxonomy of automated trade execution systems
www.sciencedirect.com [PDF]
… Each market center separately reports the number of shares executed on its market and shares executed elsewhere but provides only aggregate execution-quality measures, regardless of where orders execute …

Capital Budget Execution, Accounting Quality and Investment EfficiencyCapital Budget Execution, Accounting Quality and Investment Efficiency
papers.ssrn.com [PDF]
… Each market center separately reports the number of shares executed on its market and shares executed elsewhere but provides only aggregate execution-quality measures, regardless of where orders execute …

Legal and economic aspects of best execution in the context of the Markets in Financial Instruments Directive (MiFID)Legal and economic aspects of best execution in the context of the Markets in Financial Instruments Directive (MiFID)
www.tandfonline.com [PDF]
… Each market center separately reports the number of shares executed on its market and shares executed elsewhere but provides only aggregate execution-quality measures, regardless of where orders execute …

A note on execution costs for stock index futures: Information versus liquidity effectsA note on execution costs for stock index futures: Information versus liquidity effects
www.sciencedirect.com [PDF]
… Each market center separately reports the number of shares executed on its market and shares executed elsewhere but provides only aggregate execution-quality measures, regardless of where orders execute …

Automated execution system having participationAutomated execution system having participation
patents.google.com [PDF]
… Each market center separately reports the number of shares executed on its market and shares executed elsewhere but provides only aggregate execution-quality measures, regardless of where orders execute …

Impact of internal controls on execution of payroll system: a case study of ministry of finance and economic affairs–Zanzibar (MoFEA)Impact of internal controls on execution of payroll system: a case study of ministry of finance and economic affairs–Zanzibar (MoFEA)
scholar.mzumbe.ac.tz [PDF]
… Each market center separately reports the number of shares executed on its market and shares executed elsewhere but provides only aggregate execution-quality measures, regardless of where orders execute …



Q&A About Manual Execution


How does manual execution differ from automatic execution?

Manual executions tend to be slower than automatic ones, in which trades are inputted quickly and often in real time.

What do investors gain by using manual executions?

Investors gain time advantages when they use manual executions.

Do exchanges charge different fees for manual versus automatic executions?

Yes, exchanges charge different fees for the two types of trading.

Is it possible to execute stock and forex market transactions manually?

Yes, it is possible but this method puts investors at a disadvantage because these markets move so fast that prices can change almost instantly.

Why would someone choose to use a manual execution instead of an automated one if they have access to both methods?

Someone might choose a manual execution over an automated one if they want more control over their trades or if they don't have access to automated trading platforms or accounts .

Are there any disadvantages to using manual executions?

There are several extra steps that must be taken to process a trade manually and it can take several minutes before an actual transaction is executed.

What is manual execution?

Manual executions are trades done with the help of a dealer or broker.