Terms starting with P
6 terms
Partial Fill
When only a portion of a trade order is executed due to insufficient liquidity at the requested price level.
Payment for Order Flow (PFOF)
A practice where a broker receives compensation from a market maker or third party for routing client orders to them, creating a potential conflict of interest.
Also: PFOF
Pip
The smallest standard unit of price movement in a currency pair, typically the fourth decimal place (0.0001) for most FX pairs.
Also: Point in Percentage
Positive Slippage
When an order executes at a better price than expected, resulting in a favorable outcome for the trader.
Also: Price Improvement
Price Improvement
When a trade executes at a better price than the prevailing quote at the time of order submission, representing a measurable benefit to the client.
Price/Time Priority
An order matching rule where orders are filled first by best price, then by earliest submission time among orders at the same price.