In this article, We learn about “Hold Time “.Let’s Go!
Hold Time is the discretionary delay between order receipt and execution.
Hold time measures an arbitrary element of execution delay, i.e. the time a trader observes between placing an order and receiving a fill notification
or refuse.
Execution Latency is the time it takes between the transmission of an order from the trader’s system and the receipt of a response.
“Hold Time” is a common name for Discretionary Delay , in which execution of a trader’s inbound orders is deliberately delayed pending a decision by the liquidity provider system to be executed or rejected.
This period is also known as Last View Window.
Discretionary Delay Time is any amount of time an order is held before a trade is executed.
Liquidity Providers (LPs) can apply for or change holding times based on their assessment of the market impact on clients, current market conditions, or their own interest in trading in a particular direction.
Longer wait times and execution delays not only exacerbate the opportunity cost associated with rejections, but also represent the opportunity cost of completed orders, because while traders wait for a response, they work to cash in on potential trades but may not be able to cash out Execute the rest of the strategy.
If you want to learn more foreign exchange trading knowledge, please click: Trading Education.
