NDD Glossary
ConceptIntermediate

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.

Last updated: February 10, 2026
1

A trader submits a buy order at 1.1050 (the current ask price).

2

Between order submission and execution, the ask price drops to 1.1048.

3

The broker executes the order at 1.1048, passing the 2-pip improvement to the client.

4

The client pays less than expected — this is price improvement.

5

Price improvement is the positive-slippage scenario made intentional through broker policy.