Forex trading is a highly volatile trade! Change is the only thing that’s constant in this trade. Price improvements are one of the most crucial aspects of foreign currency trading.

The fact is that the market price for the transactions that you are going to make, can change between the time you execute an order and the time it is filled, which can take only a fraction of second. Therefore, you need to be deciding quickly whenever you are dealing with foreign currency trading.

Price improvement is that state of the foreign exchange trading, where you can make more money from the order that you have placed. When you fill your order at a more favorable price than the one you requested for, it is regarded as a Price Improvement.

There is no limitation as to what sort of transactions can receive a price improvement. However, orders made in a market with fluctuating prices are more prone to benefit from this feature.

Price improvements tend to occur at a much higher frequency, than trading routine days, when there are significant news releases that will impact the market, or during weekend gaps.

If you still have any doubts regarding this topic, you can always get in touch with one of our DailyFX Course Instructors, and learn everything about ‘Price Improvements’.