Market Execution

01How a market quote works

Every tradable instrument has two prices at the same time:

Bid

The price at which you can sell to the market.

Ask

The price at which you can buy from the market.

Spread

The difference between Ask and Bid.

For educational purposes, this guide describes DMA Capitals with a 25-pip spread under normal market conditions. The live spread is market-driven, though. During fast or illiquid conditions, especially around major economic announcements, the spread can widen significantly because available liquidity changes in real time.

In practical terms:

02Tick prices and how MT5 charts are built

A tick is a single market update. Every time the market changes, the platform can receive a new Bid price, a new Ask price, or both. These updates can happen many times in one second.

A candlestick chart does not display every single tick. It compresses many ticks into one candle for the selected timeframe. On a 1-minute chart, for example, one candle summarises:

By default, the standard MT5 candlestick chart is a Bid chart. The visible candle high and low usually reflect the Bid side of the market, so the Ask side can move above the visible candle high without appearing on the chart unless an Ask line is enabled.

03How trades are processed, and how Stop-Out works

When you send an order in MT5, the platform checks the symbol, lot size, available margin, and the best currently executable market price. If the requested price is no longer available, the trade is filled at the next available price. This is why fast markets can produce slippage or different execution prices.

Pending orders and stops trigger on the side of the market they trade on:

DMA Capitals offers a 2% Stop-Out level. If your margin level falls to approximately 2%, the system may begin closing positions automatically to protect the account from falling further below minimum requirements.

Margin level = (Equity ÷ Used Margin) × 100

A 2% Stop-Out level gives positions the most possible room to stay open before automatic liquidation. It is not a guarantee against loss: in highly volatile conditions, once the margin level reaches Stop-Out, positions may close very quickly at the then-current market price.

04Why the chart and the execution price can differ during news

High-impact events can cause large price changes, thinner liquidity and rapid spread widening. Examples include the FOMC Economic Projections, the FOMC Statement and the FOMC Press Conference. During such events, market quotes can change in milliseconds.

How to read the example above:

• The candlesticks are the Bid prices MT5 uses for its default chart.
• The line above them is the Ask price, which is what closes a SELL position.
• During the highlighted news period the spread widens sharply, so the Ask can move well above the visible Bid candle high.
• That is why a SELL position can be closed at a price that never appears on the default Bid candle.

In short: the chart is not wrong. It is showing one side of the market (Bid), while trade execution may depend on the other side (Ask).

05Practical guidance for safer trading during news

No broker can fully control the spread when market liquidity changes suddenly. When high-impact news is released, spreads may widen beyond normal conditions, and using maximum margin with large positions increases the risk of Stop-Out.

• Avoid opening very large trades during high-impact news if account equity is limited.
• Do not use maximum margin on a small balance — even a temporary spread widening can sharply reduce margin level.
• Remember that a SELL position is sensitive to the Ask price when it closes, and a BUY position to the Bid price.
• Check the economic calendar before trading major events such as rate decisions, FOMC releases, CPI and NFP.
• Use risk management that assumes spreads and execution prices can change quickly in fast markets.

06Five key points to remember

• There are always two prices in the market: Bid and Ask.
• Default MT5 candles usually show Bid prices, not every Ask tick.
• A SELL closes on Ask and a BUY closes on Bid.
• DMA Capitals uses a 25-pip spread example in normal conditions, but spreads can widen during news and low liquidity.
• A 2% Stop-Out level gives positions room to stay open, but large trades during high-impact news can still be stopped out.

This guide is designed to improve understanding of market execution. Always review contract specifications, margin requirements and trading conditions before trading.