Market Execution vs Instant Execution in MT4
MT4 STP vs MT4 Dealing desk
STP brokers use Market execution, which doesn't allow stop loss and take profit orders to be specified & set at the moment of placing a new trade. SL and TP orders can be added only after the trade is open, so that the price of the open position is already known. A trader then needs to modify an existing trade to add stops and profit targets.
Dealing desk brokers use Instant Execution, which allows stop loss and take profit orders to be set with the initial entry order.
A trader writes:
I noticed that some of the brokers disabled instant execution from the MT4
The answer is in MT4 ->STP (ECN) bridge technology, which doesn't allow Instant execution mode. Apparently, in STP technology they don't allow any modification to the order before it's filled.
Below is the document from MetaQuotes, where you can confirm it:
You're right about risks that trades face when entering without stops. That can be viewed as a definite disadvantage of MT4 STP/ECN. Dealing desks brokers, on the other hand, provide Instant Execution.
Market Execution - STP
Instant Execution - Dealing desk
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